From No Space at the Table
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The Bush tax cuts did not produce new jobs. In 2003, the President's Council on Economic Advisers promised 5.5 million new jobs by 2004, but only 2.6 million jobs were actually created. The jobs created failed to even match the 4.1 million new jobs expected in a normally functioning economy, let alone one supposedly supercharged by tax cuts. Yet that hasn't stopped conservative forecasters from chanting the "tax cuts create jobs" mantra in 2005.
The quality of jobs, measured by income, health insurance and retirement benefits, has also declined appreciably since the 2001 tax cuts. Between 2000 and 2004, inflation-adjusted family income declined, and the number of U.S. workers covered by employer-provided retirement benefits and health insurance contracted.
African-American and Latino families have seen their economic security deteriorate even faster than white families. Despite the president's statement that tax cuts would create jobs for all who want them, the racial economic divide has widened. African-American unemployment remains about twice as high as that of white workers. And the earnings gap between white workers and workers of color has grown even steeper since the 2001 tax cuts.
One of many reasons that tax cuts are a shaky formula for increasing jobs is that tax cuts mean less government revenue and therefore fewer public-sector jobs. Some tax revenues are spent hiring government workers (direct job creation), as well as purchasing goods and services from private businesses (indirect job creation). Tax cuts may eventually stimulate investment that may generate some new jobs, but less government revenue will eliminate jobs at the same time, offsetting any positive job growth.
Tax cuts are an unsound prescription for job creation and economic good health, and more and more people recognize that relentless tax cutting, far from creating new jobs, has instead created a staggering deficit that threatens our children. Asked in an April 2004 CNN poll to choose between the 2003 tax cuts and a job creation program, 76 percent of respondents chose jobs; 50 percent chose deficit reduction over tax cuts; and 60 percent said they had not benefited from tax cuts.
[...]
The Bush tax cuts did not produce new jobs. In 2003, the President's Council on Economic Advisers promised 5.5 million new jobs by 2004, but only 2.6 million jobs were actually created. The jobs created failed to even match the 4.1 million new jobs expected in a normally functioning economy, let alone one supposedly supercharged by tax cuts. Yet that hasn't stopped conservative forecasters from chanting the "tax cuts create jobs" mantra in 2005.
The quality of jobs, measured by income, health insurance and retirement benefits, has also declined appreciably since the 2001 tax cuts. Between 2000 and 2004, inflation-adjusted family income declined, and the number of U.S. workers covered by employer-provided retirement benefits and health insurance contracted.
African-American and Latino families have seen their economic security deteriorate even faster than white families. Despite the president's statement that tax cuts would create jobs for all who want them, the racial economic divide has widened. African-American unemployment remains about twice as high as that of white workers. And the earnings gap between white workers and workers of color has grown even steeper since the 2001 tax cuts.
One of many reasons that tax cuts are a shaky formula for increasing jobs is that tax cuts mean less government revenue and therefore fewer public-sector jobs. Some tax revenues are spent hiring government workers (direct job creation), as well as purchasing goods and services from private businesses (indirect job creation). Tax cuts may eventually stimulate investment that may generate some new jobs, but less government revenue will eliminate jobs at the same time, offsetting any positive job growth.
Tax cuts are an unsound prescription for job creation and economic good health, and more and more people recognize that relentless tax cutting, far from creating new jobs, has instead created a staggering deficit that threatens our children. Asked in an April 2004 CNN poll to choose between the 2003 tax cuts and a job creation program, 76 percent of respondents chose jobs; 50 percent chose deficit reduction over tax cuts; and 60 percent said they had not benefited from tax cuts.
[...]
posted by TheFuriousGourmet | 6:46 AM
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