Do Tax Cuts Create Jobs? If So, How?

Discussion in 'Economics' started by OddTrader, Feb 1, 2017.

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  2. Only way I can see tax cuts creating new jobs is if that money is being spent back into the economy by the people. That would in turn create demand and with higher demand comes the need to hire more people to fill that demand.

    That's just my theory, though.
     
  3. algofy

    algofy

    More money in the pocket of business owners that can use it to expand their business, which creates new jobs, or new yachts.
     
    cdcaveman and gkishot like this.
  4. CyJackX

    CyJackX

    Tax cuts anywhere stimulate some growth, but I believe there is a very strong diminishing ratio of returns when it comes to where. High earner tax adjustments are negligible. Middle/lower class are great.
     
    piezoe likes this.
  5. southall

    southall

    Someone has to build the yachts, so more jobs.

    It is the misers who are mean and just want to hoard the wealth.
     
  6. - Not misers but the marginal propensity to consume -
     
  7. Any tax cut is good.. taxes are by definition confiscations of value creating persons to redistribute to non value creating persons... Government does not create jobs it steals them from the private sector.. bureaucracy does not create value it destroys value it's a different set of incentives bureaucrats are incentivized to have more employees under them whether or not they are providing value or not sometimes it's better for them to have people that are doing less than more which enables them to have more people under them because they are not subject to the market test
     
    DTB2 and murray t turtle like this.
  8. CyJackX

    CyJackX

    But some tax cuts are much better than others.
     
    murray t turtle likes this.
  9. What about the police and the military?
     
    murray t turtle likes this.
  10. It's an open question and I have looked at a lot of literature on the subject. It's sort of a question about whether Ricardian equivalence is a thing and it's actually quite complicated.
     
    #10     Feb 1, 2017