Do Tax Cuts for the Wealthy Create Jobs?

Discussion in 'Politics' started by InTheLight, Mar 30, 2011.

  1. InTheLight

    InTheLight
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    Do tax cuts for the wealthy create jobs? Do you believe that the Bush tax cuts led to job creation? If so, please explain the process, or the method by which tax cuts to the wealthy create jobs.
     
  2. StefanM

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    The theory is that it frees up capital to be invested in the market, and these investments will create jobs.

    I think a better approach is a direct approach--tax credits or tax breaks specifically for job-creating activities.
     
  3. Salty

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    Just to clarify - are you asking if the tax cuts you are talking about - would make the % of income that the rich would pay to be less than what the middle class would pay? or are you talking about the rich pay 3x the % instead of 2x the % of what
    the middle class pays?

    Salty

    PS: ITL - did you read the link about the 10 men "sharing" the cost of lunch?
     
  4. StefanM

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    In some cases, the wealthy do pay less than the middle class as a percentage. The rate for capital gains tax is significantly lower than the income tax for higher brackets. Middle class individuals tend to receive the majority of income through salary, but higher income individuals are more likely to receive stock-based compensation, which if liquidated is subject to capital gains tax.
     
  5. InTheLight

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    I'm talking about cutting the top marginal rate on the wealthy, as Bush did when he cut the top rate from 39.6% to 35%. Does that create jobs? If so, how?
     
  6. carpro

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    Define "wealthy".
     
  7. InTheLight

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    Those in the top income bracket. This would be single persons with a gross income above $381,250 or married people with gross income above $387,050 per year.
     
  8. Salty

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    And that would only make you welthy,based on where you live! 387 is not a whole lot if you live NY City

    On the other hand, I would say anybody making more than 75 grand is wealthy. and to some, 30 G's would be wealthy!
     
  9. InTheLight

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    Do you mean stock market? If so, the only investment in the stock market that creates jobs is investments in initial public offerings, or additional stock being sold directly by a company. Otherwise investing in the stock market usually means buying existing shares from another shareholder.

    Absolutely agree.
     
  10. InTheLight

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    I'd say making over $1,000 a day is wealthy just about anywhere.
     
  11. StefanM

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    Ummm...no. 387k is a lot everywhere.

    http://swz.salary.com/CostOfLivingWizard/Layoutscripts/Coll_Result.aspx

    I did a cost of living conversion from NYC to Nashville, TN.

    This calculator indicated that you would need $202k to maintain the same standard of living in Nashville.

    202k is very well off in Nashville.
     
  12. Salty

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    and to some people an individual making almost $100 a day is wealthy.

    Wealthy is simply a relative term

    Thats it, on any day that someone makes over $100 must pay a surcharge tax.
    That wont effect me, since I don't make that much!!!! If you do, you are wealthy, in my book!!
     
  13. billwald

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    I try to understand how you all think, wheels spinning.

    $1000/day personal income or family income?

    If you think 10 times median income is "rich" then what do you call 1000 and 10,000 times median income?

    Federal minimum wage is $7.25/hour or $15,080/work year. Median FAMILY income is around $50,000/year.

    Median personal income is around $39,000. http://en.wikipedia.org/wiki/Median_household_income

    http://en.wikipedia.org/wiki/Personal_income_in_the_United_States

    Taking an average, median income is around 3 times federal minimum wage.

    What do you all think is a reasonable divider between working class and middle class? Between middle class and rich class? Between rich and super rich?
     
  14. Salty

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    Reasonably - everyone should pay the same (low) percentage! via the Automatic Electronic Tax with Nada - None -NO loopholes/exemptions!!!
    How about 1/2 of 1% Federal AET?

    It seems I am a bit off OP, but if all paid the same low % of tax - then there is no need for tax cuts
     
    #14 Salty, Mar 30, 2011
    Last edited by a moderator: Mar 30, 2011
  15. StefanM

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    It's not a matter of income for these distinctions. The middle class manages the working class. The rich class pays the middle class to work for them. The super rich do whatever they want.
     
  16. carpro

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    Just wondered. Every time one asks a distribution of income advocate, one gets a different answer.

    Just for the purposes of this discussion , I'll use Obama's figure of $250,000.

    Since 75% of small business owners file individual tax returns, higher rates might force them to fire workers. OTOH Only 3% of small business owners make over $250,000, but that 3% hires 25% of the work force.

    So, even if you don't agree that a tax decrease will increase employment, it's hard to make a case that a tax increase won' increase unemployment.

    Even if it doesn't "create" jobs, it "saves" them, and puts them in Obama's favorite category of proof that the stimulus was worth the money..."jobs saved".

    I know what I would do if I owned a business and got a 4% tax increase along with health care mandate and all the other burdens democrats want to place on small business owners...I'd fire somebody. Several somebodies if I could.
     
  17. StefanM

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    Solution: offset the tax increase by tax credits for small businesses. You create jobs; you reduce your tax bill.
     
  18. Crabtownboy

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    Trickle down has been a very slow drip.
     
  19. carpro

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    Status quo. With all the other Obama mandates for small business, the net effect is job losses.

    If you really want to create jobs, do the credits and leave the tax rate alone. Then repeal Obamacare and get rid of the EPA and their new regs.
     
    #19 carpro, Mar 31, 2011
    Last edited by a moderator: Mar 31, 2011
  20. carpro

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    Yeah, lately.

    But trickle up has never worked at all.
     

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