If I’d heard it once, I’ve heard it a thousand times: “Tax cuts for the rich create jobs.” But if the Bush tax cuts for the wealthy are extended it will plunge America further into debt? “Tax cuts for the rich create jobs.” But in the ten years the Bush tax cuts have been in effect unemployment has sky rocketed? “Tax cuts for the rich create jobs.” But if the richest 1 percent aren’t willing to have their taxes from 36 percent to 39 percent, why should a Wisconsin schoolteacher have their benefits reduced 8 percent? “Goddamn it, are you not listening, tax cuts for the rich create jobs.”
Many economists have pointed out that trickle down economics does not actually trickle down and tax cuts for the rich don’t actually create jobs, but today I’m here to argue that they actually COST jobs.
They cost jobs because a tax cut for a corporation or wealthy individual is the same thing as a revenue cut for the federal government, thus forcing them to lay off federal employees. Let’s do some hypothetical math: If the federal government is going to receive 10 billion from a corporation like General Electric (a notorious tax cheat) or Target, but gives them a tax cut for half that, they don’t receive 5 billion in revenue they were supposed to. 5 billion dollars the government doesn’t have creates a budget hole so they have to take money from somewhere unrelated to plug into that hole: like teacher salaries. They might cut teacher pay and benefits across the board—as the Governor of Wisconsin wants to do—or they might just lay off a few thousand teachers to use their salaries to fill that budget hole.
On a smaller scale the same is also true of rich individuals like the Koch Brothers—the largest individual donors to political candidates in the country, they donate to Republicans and are seeing a pretty good return on their dollar in Wisconsin—who are worth a combined 36 billion dollars to make them the 4th wealthiest men in the world (even separated they tie for 18th richest in the world). If they receive a tax cut of just five million, and they have received a tax cut of much more under Governor Walker, it’s the same as not having the money to fund a hundred 50,000 a year government salaries.
In short, to provide a corporate tax cut you have to take money from somewhere else. It is not like state and federal governments have this surplus of cash lying around we don’t know about. If a state is able to give a tax cut to corporate interests or rich individuals—we ain’t talking 250,000 a year rich like some doctors make that lets them think I’m talking about them, I’m talking 2,500,000,000 a year rich like the wealthiest few hundred people in America average—it has to pay for it from somewhere else. Which is why in the last week we have seen Florida Governor Rick Scott cut 1.7 billion from public education to fund a tax cut to corporate interests, and we’ve seen Michigan’s Governor do something similar with money that was supposed to go to elderly and poor people. Despite what the Tea Party would have you believe, transfers of wealth don’t just involve the wealthy’s money transferred to poor people. This is a transfer of wealth from the people who have nothing to the people who already have everything. But I bet we won’t see the Tea Party raising hell about this.
It’s true, people that are rich are always fucking whining about how much taxes they pay, but half the time they don’t even pay them.
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