Explain what? Agian, you did not give historical information or factual information, but instead said if they
SAY this, it must be so.
Investment analyst Linda Traynham in her opinion writes:
Again, opinion. Where's the evidence to support the opinion?
This only states that the argument has gained traction. Again, no factual evidence to support that it effects the economy.
I know asking for factual evidence means you place people in boxes. So, don't let anything stop you. But, you have not given factual information.
If you look, there's even a thread on one such study.
Tax breaks aren't a good way to create jobs.
That's the central point of a study released this week by the backers of Proposition 24, a state ballot initiative that would roll back three business tax breaks approved by the Legislature in 2008 and 2009.
Study: Tax breaks hurt, don't help - DailyBulletin.com
(1) In a 2002 article in the National Tax Journal by William Gale and Samara Potter concluded that the Bush tax cuts reduced the size of the economy. As we have stressed in these posts, the distinction between debt-financed and budget-neutral tax cuts is crucial:
Our results do not show that reductions in tax rates have no effect, or negative effects on economic behavior. Rather, the improved incentives--analyzed in isolation--unambiguously increase economic activity, by raising labor supply, human capital, and private saving. Indeed, these factors raise the size of the economy by almost 1 percent. But [the 2001 tax cut] is a set of incentives-- financed by a reduction in public saving. The key point for understanding the growth effects is that the tax-induced increase in private saving is a only a small faction of the decline in public saving, so that [overall] national saving falls substantially. The decline in national saving reduces the capital stock, even after adjusting for international capital flows, by sufficient amounts to reduce GDP and GNP.
tax.com: Tax Cuts Kill Jobs, Part 2
Similarly, a series of tax cuts in 2003 fell far short of targeted job growth. The Bush administration claimed the tax cuts would create 1.4 million jobs, in addition to some 4.1 million jobs expected to be generated over an 18-month period. But EPI tracked the initiative and found that not only did the additional 1.4 million jobs not appear, but the 4.1 million jobs that had been expected without the tax cuts never materialized either. By the end, the economy only saw an additional 2.4 million jobs added to the economy.
Tax cuts won’t create jobs
From your article:
The nonpartisan Congressional Budget Office this year analyzed the short-term effects of 11 policy options and found that extending the tax cuts would be the least effective way to spur the economy and reduce unemployment. The report added that tax cuts for high earners would have the smallest “bang for the buck,” because wealthy Americans were more likely to save their money than spend it.
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