How do lower taxes on the rich create jobs?

OK, the though seems to be that lower taxes will create jobs, which creates more taxable income, which creates revenue.

The problem is that we have lower taxes RIGHT NOW and it's not creating jobs. When does this magical thing happen? We've had low taxes in place for a decade and so far it hasn't worked...

13 Answers

  • Bobbie
    Lv 6
    1 decade ago
    Favorite Answer

    For a few people, they might. But across the board, they don't. We've had lower taxes for the rich, for everyone for the last 10 years and look at where unemployment is right now.

  • Anonymous
    1 decade ago

    I don't know how to explain this to you. The private sector and the public (government) sector are two different sectors that have to be balanced out. We need revenues to pay for government services and we need to tax to get the revenue. Taxes rob the private sector of growth ALWAYS. If you lower taxes, you rob it less, even if total government revenue goes up. The controversy over tax cuts for the rich has little to nothing to do with whether it will create jobs or not, but how many. The controversy is also over the effect of the tax cuts on government revenue. There has been very little economic activity as of late. All economic projections have said that the tax cuts on the rich will not pay for themselves. Government revenue will go down by an estimated $700 billion. Even if the lower taxes on the rich will create jobs, the amount they will create will be negligible. If the cuts expire there may be an increase in unemployment from say 9.3% to 9.35% or no change at all. Why aren't the tax cuts magically creating jobs like the Republicans think they will? The demand for goods and services is disappointingly low. Nobody is buying anything, because they have no money. The only people with money are wealthier than the average American. Even they are not spending. People are unemployed and tightening their belts. The only money they have is whatever they get from unemployment compensation. Something the Republicans want to end.

  • 4 years ago

    i do no longer understand a thank you to describe this to you. the non-public sector and the final public (government) sector are 2 diverse sectors that would desire to be balanced out. we would like sales to pay for presidency centers and we've have been given to tax to get the sales. Taxes rob the unique sector of progression constantly. in the form you narrow back taxes, you rob it much less, despite if entire government sales is going up. the debate over tax cuts for the prosperous has little to no longer something to do with no rely if it's going to create jobs or now no longer, yet what proportion. the debate is likewise over the effect of the tax cuts on government gross sales. there became little or no financial sport today. All financial projections have reported that the tax cuts on the prosperous shouldn't pay for themselves. government earnings will bypass down by way of way of an envisioned $seven-hundred billion. in spite of the undeniable fact that the decrease down taxes on the prosperous will create jobs, the quantity they're going to create may be negligible. If the cuts expire there is often an improve in unemployment from say 9.3% to 9.35% or no exchange in any respect. Why do no longer seem the tax cuts magically starting to be jobs purely like the Republicans believe they are going to? The call for for products and possibilities is disappointingly low. no one is paying for some thing, pondering the certainty that they have got no money. the single those with money are wealthier than the uncomplicated American. Even they do no longer seem spending. persons are unemployed and tightening their belts. the single money they have is despite they get from unemployment repayment. some thing the Republicans prefer to end.

  • 1 decade ago

    Well, do you really believe if lower taxes does not create jobs that higher taxes will?

    Higher taxes ultimately raise the price of an item, thus reducing income, leading to layoffs. In a closed economy, at least the money then going to the government as taxes is then respent back into the economy, although we can all argue how efficient that is or is not.

    However, since we are not a closed economy, when our taxes go up, that affects our manufacturing costs. Our prices go up so not only do people not buy as much, when they do buy, they are more likely to buy their products from outside the country.

    So, people in China and Mexico are benefitting from the dollars that could have been spent here in America.

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  • 1 decade ago



    Lower taxes do not create more jobs.

    A company owner will only hire an additional employee if

    he must do so in order to get the work done.

    Lowering taxes will not magically create more of a work-load

    in the work place.


    The theory is that when a company owner gets a tax break,

    which is effectively more money remaining in his pocket that,

    he will decide to expand his company by producing more products

    and trying to sell them and therefore he shall need more employees.

    In reality this is bullsh!t because a company owner will not suddenly

    start to produce more products in hope of selling them if there is no

    actual demand already for these products. He will not risk over-producing

    and then becoming stuck with the overage of products that he can’t sell.


    It’s a big lie that tax-cuts for the rich shall produce more jobs.

    Republicans simply wish to give more money to the wealthy because

    they are friends with the wealthy who shall be doing nice favors for the

    republican senators who shall grant them these tax cuts. It’s that simple.

  • Better question , how do taxes on anyone create jobs?

    Lower taxes, or less money plundered from the productive sector in to the non-productive government ALWAYS create jobs. AND who really are the "rich"?

    By the way , you need to read the stats

    Four Year Total Republicans in control of congress: 6,690,000 Jobs GAINED (2003-2006)

    Four Year Total Democrats in control of congress: 6,334,000 Jobs LOST! (2007 - 2010)

    Tax Breaks For The Wealthy Do Boost Economy

    Alex Brill and Chad Hill, 10.27.10, 12:50 PM EDT

    Congress is biting the hand that feeds long-run economic growth by raising tax rates on the rich.

  • Ron R
    Lv 6
    1 decade ago do realize that there couldn't have been record unemployment unless there was first "record" employment don't you? think millions of people lost jobs and there wasn't an economy created by the tax cuts? that economy sank because of dems in congress from 2006-2008 fact.

  • Joan J
    Lv 6
    1 decade ago

    It doesn't, a tried and proven fact will back this data. The remaining population will pay the piper which will allow the rich to get richer and skate by without paying their fair share, there's something wrong with this picture.

  • IceT
    Lv 7
    1 decade ago

    IF it doesn't work then please explain the 4% unemployment we had for much of the Bush admin!

    It takes more than just lower taxes to start the economy. You also need stability which we are not going to get thanks to BFD Obamacare.

  • 1 decade ago

    Oh it does. They'll have to call their bank, ask to speak to someone just to know how much zeroes they have laying low. Did not work with "w" THE PEOPLE DID NOT BENEFIT FROM THE F******TRICKLE DOWN. on top of that THE PEOPLE HAVE TO BAILED THEM OUT.

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