GQP always lies about the impact in corporate tax cuts. They have little to no impact on jobs. I'll get into data below. But: It is merely a way to enrich the rich, to let corporations buy back stocks/increase after-tax profits so CEO stock options hit strike prices so they...1
...can exercise their options awarded as compensation "bonuses" (this means they can convert them into stock) and immediately sell them at a high price. Now, using the extra cash to hire people would keep after-tax profits *lower* than they could have been, which Wall Street...2
...analysts would take as a negative. It would hold down profit "growth" that isnt actual growth, and hold down stock prices, which are the single most important metric in senior executives personal enrichment. This is just legal stock manipulation to enrich GQP contributors...3
...now again, before we get into data, think it through. The businesses benefiting from the tax cuts are large corporations. They have ready access to capital markets, where they can raise billions through issuing debt. They would do so for the purpose of growing production...4
...so they can open new facilities/hire people. In GQP mindset, large corporations cant pursue their growth strategies unless they have tax cuts. They don't hire needed employees unless they have tax cuts. They abandon strong performance unless they have tax cuts. This is BS...5
...any company that needs tax cuts to grow is incompetently managed. It is simply creating fake profit/ share price growth. If they were needed to hire someone or expand jobs, they would have done it. If they didn't need to, they wouldn't. They are not holding back on hiring...6
...& proper management of their companies in hopes of a tax cut that could disappear at any time. It is just the federal government setting up the need to borrow money (because they cut taxes while raising spending) & let all the benefits of those US borrowings for after-tax...7
...profits and stock price goosing. It is *solely* about further enriching the rich. Which is why the GQP donors shovel tons of cash to the GQP politicians, so they can get their corporate tax cuts, exercise their options, and personally get tens/100s of millions of dollars...8
...this is why the GQP has no policy consistency except for tax cuts (and blind deregulation) - they abandon free trade principles, they spew endlessly about wedge issues that have no impact on anyone's lives - while shoveling borrowed money to the rich. Now, the data...9
...a quick one. In 1994, GOP (later GQP) screamed that if Clinton raised taxes, jobs growth would collapse. He did; the opposite happened. In 2017, they said if Trump cut taxes, job growth would explode. He did; the opposite happened. The best data on this comes from 2019.../10
...(quick aside: job growth is the measure of economic success, not total number of jobs. This is why GQP/Trump only talked about total number of jobs, because they were building off the explosive job growth under Obama). The reason we use 2019 is that it is the only year...11
...that could show results of tax cuts. 2020 had outside forces (COVID) which makes trying to find tax cut impact impossible. The cuts were passed at the end of 2017; no company would have been instantly running off hiring people if that happened. They hire for *strategy*...
...billion dollar companies don't say "If only we had tax cuts we could hire those 100 people we need. But we'll just have to give up on our strategy."
So, 2019 would be the first year you could reasonably see extended impact on job growth. And the "explosion" didn't happen...13
So, 2019 would be the first year you could reasonably see extended impact on job growth. And the "explosion" didn't happen...13
...so, full year 2019, final growth numbers (not initial report, have to wait for revision to get actual numbers): The *worst* job growth since 2011. The *worst*. And in 2011, we were still digging ourselves out of the 2008/09 collapse. So where was the boom? In stock prices...14
...which is *exactly* what every person who understands this stuff was predicting: Trillions in new federal debt, extra cash flooding into the stock market, stock prices going up, the rich getting millions. You're now paying interest on debt used to further enrich rich CEOs...15
...so, what *does* create jobs? Investing in jobs. We have a massive need for infrastructure repairs/expansion. We have close to the worst ratings on quality of infrastructure in the industrialized world. Remember: jobs come from strategies. Businesses that are rushing to...16
...build roads, fix bridges, build out internet, establish networks for new energy supplies are undertaking massive projects that require an expansion of workers in dozens of fields: Construction, metals, concrete, wiring, wire laying, acrylics, and on and on and on. There...17
...is WORK to be done. There are contracts to fill (hell, even lawyers would get more work)And profits to be made. These are profits from doing business, from meeting contract requirements. Companies don't just get after-tax profits from financial shenanigans. They get them...18
...doing *business.* Building stuff, selling stuff. That is what creates jobs: when there is work to be done. Giving XYZ company a tax cut, when it has no plan to hire more people to begin with, does not result in more jobs. Giving them a contract to build a bridge that they...19
...didnt have before requires them to hire people to build the bridge, to buy concrete (results in jobs in the concrete industry), to buy steel, to buy to buy to buy.
So, when the GQP says "tax cuts lead to jobs" it is a shameful lie. It enriches the rich. Building stuff...20
So, when the GQP says "tax cuts lead to jobs" it is a shameful lie. It enriches the rich. Building stuff...20
...enriches the middle class: People in construction, manufacturing, etc. But those people dont shovel millions to GQP politicians. Which is why the GQP screams "Dr. Seuss!" and ignore our crumbling infrastructure. Rebuilding it requires taxes to go up. Which means the rich...21
...cant buy their 3d house or 97th car in their car collection or 30th refrigerator in a mansion. But it means the middle class doesnt have to work 3 jobs. So DONT listen to lies. Ask: How does building stuff not lead to jobs, but cutting taxes does? Answer: They're lying.
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