Republican’s Corporate and Individual Tax Cuts, Job Creation and Wages

In order to raise the debt ceiling which will prevent America from defaulting on our debt, Republicans are insisting on cutting spending by slashing entitlement programs like Medicare and Medicaid while at the same time refusing any revenue increases like ending subsidies on gas and oil or tax increases on the wealthy and corporations. The blanket reason for this they say is raising taxes on the “job creators” will have a negative effect on our economy and will not create new jobs. 

Well, I am here to tell you that is simply wrong. If keeping the tax rate on the above mentioned people at the lowest levels in decades created jobs, the previous decade should have had a plethora of job creation. That would mean our jobless rate should be well below 5% (now it is maintaining at around 9%, however, in minority communities it is much higher). The fact is, under the Bush tax cuts, job creation has been at its lowest.  (click to enlarge graph below)

Also, the wages for the middle and lower classes have stagnated. Pat Garofalo reported:  Over the 2000 to 2009 period, workers experienced a “lost decade,” with incomes falling by nearly five percent and wages hardly growing at all. And according to Jed Graham, the last decade in terms of real wages was actually worse than the Great Depression: 

The increase in total private-sector wages, adjusted for inflation, from the start of 2001 has fallen far short of any 10-year period since World War II, according to Commerce Department data. In fact, if the data are to be believed, economy wide wage gains have even lagged those in the decade of the Great Depression (adjusted for deflation). Over the past decade, real private-sector wage growth has scraped bottom at 4%, just below the 5% increase from 1929 to 1939, government data show. 

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3 responses to “Republican’s Corporate and Individual Tax Cuts, Job Creation and Wages

  1. In order to raise the debt ceiling which will prevent America from defaulting on our debt,

    Pretend this is my budget:

    1. Rent on condo with hot tub – $1800
    2. Food and beer – $700
    3. Tuition – $500
    4. Credit card interest – $50
    5. Strippers – $200

    And I have just enough to cover it, while going in debt but I can swing it. Then, mom gets upset and removes my ability to go into debt.

    Could you help me remove or reduce my expenses? Or, better question, help me order them such that the critical ones get paid first and the others last, or not at all?

    If keeping the tax rate on the above mentioned people at the lowest levels in decades created jobs, the previous decade should have had a plethora of job creation.

    Except that spending was different then.

    • Could you help me remove or reduce my expenses? Or, better question, help me order them such that the critical ones get paid first and the others last, or not at all?

      With regard to your hypothetical budget, what you would do is cut your expenses, say no strippers for a while and maybe cut out the beer and downsize the condo (laughing as I type this), and get a second job to increase your revenue.

      Democrats have on the table billions in cuts in the debt ceiling talks (to Medicare/Medicaid), which per Eric Cantor, they all have agreed to.

      Now they are looking at the revenue side. This is when Eric Cantor walked out and tossed it over to Boehner. They have taken off the table any revenue increases…none. McConnell/Cantor/Boehner has repeated this over the past several days.

      Democrats have not proposed any tax increases on individuals. They are focusing on loop holes and subsidies, which is equivalent to corporate socialism. Democrats are proposing ending tax subsidies for example to oil and ethanol industry, that is $40 blln, things like a loopholes for private corporate jet owners that goes into the billions.

      Except that spending was different then.

      Spending was different then because Republicans went into office in 2000 for a $160+ billion surplus. If you go back,

        GOP spent with abandon and they raised the debt ceiling through 2008 seven times.


      This is pure politics. I won’t go into why I have come to this conclusion here. My most recent post goes into this.

      • With regard to your hypothetical budget, what you would do is cut your expenses

        I would cut my expenses. However I would pay credit card debt before I paid for strippers.

        The US can do the same thing. We can pay our debt obligation before we pay for anything else.

        They are focusing on loop holes and subsidies, which is equivalent to corporate socialism

        I’m with ya on this one. Close loopholes and level the subsidy racket.

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