Tag: Jobs

Tax cuts do not cause “job creators” to hire more people or to invest in equipment, because the after tax cost higher. For example, the net cost of a $10,000 item is $8,000 when the tax rate is 20%. When the tax rate is 40% the after-tax cost is only $6,000, and more likely to pay for itself. A piece of equipment (or an employee) needs to bring in more revenue than they cost, and this is less likely to happen with a lower tax rate. However, when poor and middle class households get money, including from tax cuts, that money is much more likely to be immediately spent, stimulating the economy.

Click for more…