Quote:
Originally Posted by woj
Why not? Lets say you need $5k/month to live now... taxes get lowered, and you get $6k/month after taxes... you have an extra $1k/month now, so you might figure "why am I working 80 hours per week? I'll hire someone to help out"...
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If at the stroke of a pen someone reduced my taxes by $1000 a month I wouldn't employ another person (and unlike some people here I actually own an office and have staff, this isn't theoretical), I'd pay down debt or invest in the market creating no new jobs with it*, that's the issue with giving tax cuts to the "job creators", we don't neccessarily create new jobs with it. Give a tax cut to someone living week to week and it's going to be used to buy something straight away and much more likely to go directly into the economy...
I've only ever put on more employees when work demand was there to earn extra money, not just because I had extra money lying around, that would be a less efficient use of resources.
*At least not directly and not for a while.