Travis Waldron of Think Progress has written a thoughtful piece about tax cuts and their false promise of job creation. States that cut taxes most also had the slowest pace of job growth. Worse still, several of these states want to give more tax cuts and balance them by raising taxes on low and middle income families.
I’m not an economist, but I do know this: If consumers have less money to spend, there will be more job cuts. Austerity and tax cuts do not create jobs.
Amy Dean, writing at In These Times, challenges conventional wisdom about tax cuts and their ability to create jobs. She calls handouts to the wealthy “blind faith” in their relation to the labor economy. Tax cuts are not investment in the economy. They are a give away with most of the reward going to those who have the most. I strongly recommend Dean’s article.
President Obama and several allegedly liberal senators are saying they are being forced to compromise on tax cuts for the top 2% and the estate tax. The president even compared the Republicans to hostage takers. We tend to forget that Obama's first stimulus included 40% in tax cuts. That strategy hasn’t moved the unemployment problem. We need leadership. We’re getting politics.