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Tax cuts and Jobs: GOP illusions
Posted By Editor On August 30, 2012 @ 8:11 pm In Letters to the Editor | Comments Disabled
To the Editor,
Democrats and Republicans propose vastly different ways of creating jobs in this economy. President Obama would do so by hiring private contractors to repair and upgrade our aging infrastructure. He believes that enabling people to work and spend and pay taxes will increase demand for goods and services, create more jobs, and raise revenues to apply to our debt. Also, this will provide efficient, reliable infrastructure to help our businesses remain competitive.
Candidates Romney and Ryan believe that giving big tax cuts to ‘job creators’ — and paying for them by cutting benefits and laying off public employees – are the way to create jobs.
Let’s pretend that you are the multi-millionaire owner of a ‘widget’ factory. Recession hits, unemployment rises, and demand for ‘widgets’ dries up. Your warehouse sits full of widgets, overhead costs rise, and cutting prices barely makes a dent. So, you stop production and lay off workers.
Now a Republican administration decides to revive the economy by giving multi-millionaires, like you, a big tax cut. They lay off hundreds of teachers, firemen and police and cut the social safety net to pay for it. You save $200,000/year in taxes, but even fewer people can afford ‘widgets’ – or anything else. Is that tax cut likely to cause you to re-hire your workers and produce more ‘widgets’?
Which solution do you find more likely to create jobs and revive the U.S. economy? I hope you will vote accordingly on November 6.
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