[jerrysb]

the question is a little simplistic. Tax cuts don't simply create jobs. You have to ask what king of taxwes are being cut,, what are the monetary policies of the bank of canada, what are the fiscal policies.

To answer your question, if i'm the pm and i cut the cut your taxes and you go buy with your refund a big shiny new sony wega, you might have created a "future shop" job, and a a job for the truck driver delivering the tv, but there is no real high quality job. There is no simple answer. All i could say is that a whole book could be written about it but it would be so boring nobody would read it.

[Rev_Blair]

$1:

No way Reagan could have been re-elected if all what you claim to have happned happen.

What I've said is based on numbers, Godz46. Reagan's election results are not economic indicators.

Tax cuts are complicated, jerrysb. There is one simple way to look at it...who is going to return the money they save in tax cuts to the economy more quickly. A person making less than $50,000 per year is likely to spend their money on real goods and services in the next year. It might a new Sony, or repairs to their home (or maybe they'll be able to afford to buy instead of rent), or a new car, or education for their kids, or simply paying off debt. The less somebody makes, the less likely they are to spend money on luxury items though.

The more people make, the more likely they are to buy luxury items or invest in foreign concerns or simply sock the money away. When the biggest part of the investment craze was on, we were still seeing downsizing and job cuts, so obviously tax cuts that encourage investment do not encourage job creation.


The other part of the equation is that government spending does create jobs. It does so very directly. Conversely, government cutbacks do away with jobs.

Infrastructure, health care, education, administering government programs...whatever the spending is on...creates jobs. Those jobs tend to be well-paid and help people to develop skills. If those programs aren't there it creates unemployment.

[-Mario-]

Tax cut does work on the long term. If you try to make it work in mid recession.... then guess what of course it won't work..
In the thirties, they gave land to get the economie going... it worked some. Now a day, they built casinos... Now how is that helping the economie?

-M-

[-Mario-]

I apologize; I guess the French must have been strong. I usually try to keep my posts short for that reason.
Back to business...
It was already explained to you... You lower taxes; people will spend the extra money, which in turn, means your local business will have a quicker turn around on their stock. He would probably hire an extra helper, and the deliveries are now bigger, the delivery guy comes more often (probably with a helper now) or the supplier hires more delivery staff for the local businesses for a bigger demand. and so on, and on, and on.... In the middle of a recession... people will just built up savings or try to pay off that bank loan more quickly.

To give land away would work too... My brother has been trying to purchase a farm for two years. Now if the Government would give land away... My brother would probably have his farm now, raise some sheeps like he wants. The guy and his wife would be employed, and create a bigger need for feed suppliers and buy some farm equipment. Just make some crazy law that you must farm for 15 years on it. If you don't the Government takes the land back. This way logger companies don't take advantage of the situation.

And the casinos... Now how is that helping the economy?

-M-

[Rev_Blair]

Say it as many times as you want, that doesn't make it true.

What the hell is that you right wingers have against the arts anyway? Have no understanding that art galleries also create jobs for people with specific skills? They also help to create a culture and a Canadian identity. The artists get money, the art xsupply stores get money and employ people with it. Anybody who cares to can go to the gallery and see the art. It would be a pretty bland world if all there was in the way of art was commercial ventures.

We've been cutting the government since the 1980s. We've been paying down massive debt inflicted mostly by the policies of the Mulroney regime, but that is still where much of your tax dollars go. To blame your tax bill strictly on a present day beauraucracy after all the cuts that have gone on is simplistic and ill-informed.

To suggest that tax cuts are more important than paying off debt is irresponsible. To say that Canada needs to further cut corporate taxes when we already tax corporations at a lower rate than the US is just silly. Corporate welfare, the way it is presently doled out, is a bad idea. Incentives to push companies to fulfill government policy is not though. Neither is a "Canada first" position on government contracts.

The low tax/low service position of the neo-conservative/neo-liberal robber barons has had almost a quarter century to show results. It has failed, dismally so.

[jerrysb]

as i said earlier, which taxes do you cut. Taxes serve the purposse of funding societies needs and they, very important point here, change attitudes and spending patterns. Should you just cut taxes so that people just buy more things, or taxe innefficiencies in ouir society. Tax gas more and people buy less demanding vehicles, so more income goes towards other things instead of going to shell; then again the income that doesn't go to an oil company might just be funneled to the state so the person isn't better off, their money is just redistibuted elsewhere.

Bush made a lot of tax cuts. Since the federal gov't had less money, less went to the states, therefore user fees had to be charges on people, so they saved on taxes but then spent their refunds on user fees. Same thing happened here. liberals cut taxes, more services were dropped on the provinces who dropped more services on the cities. so the infrastruture suffered.

Before people go for tax cuts or raise, ask yourself what society you want, implement taxes that will do the job the cheapest. tax inneficiencies and rewad innovation, understant that some taxes will have to be raised while others lowered

[Rev_Blair]

Not only taxes should be targeted, where the funds from those taxes should be as well. For instance any new gasoline/gas guzzler taxes should go to fund alternative energy and energy conservation programs. At the same time any government funding or tax breaks to the oil industry or auto companies that promote fossil fuel burning cars should be chopped off at the knees.

Same with housing. See those big monster houses with only two people living in them. You know, the ones with SUVs in the driveway and either the furnace or the air conditioner running all day long? Tax the crap out of them and put the money towards a federal housing program or give it out as tax-breaks to homeowners who wish to make their houses more energy efficient.

The same works with business. Did a profitable company just lay off a bunch of employees? Good, the wages they saved just became tax money to go directly into education and retraining programs. Are CEOs making millions while their employees work for less than poverty wages? No problem, tax the crap out of the CEOs and apply the money to a guaranteed minimum income program.

A corporation doesn't like the new system? Too bad, I guess they aren't interested in doing business in a market of 30 million wealthy, well-educated people. I'm sure that competitor or two will be interested though.

Targeted taxation and spending can address a lot of social inequities and environmental problems. The companies can choose to be good corporate citizens, or they can choose to be taxed and the money used to do what the corporations would do if they were good corporate citizens.

[-Mario-]

Guys, we are all making a same mistake..... RTFQ... Read the F..... Question...

Do tax cut create jobs... Yes... Simple question. Now the reasonning...

You own a small business in a small town. You are the only game in town.
Now the government cut taxes and you now see two more dollars a month on your paycheck. Now everybody in town gets the same tax cut... two bucks. Since you are the only game in town, the all spend their two bucks at your store. Now lets say there is 10,000 of them. You now see an increase in sales of 20,000 a month in your store. Now that is a lot of stock to rotate, so you hire a helper. The deliveries are bigger and more frequent... more delivery guys are hired... and so on, and on, and on.
That is just your town.

Voila.

The question is not about what we are cutting, and why. RTFQ