Author Topic: Tax cuts actually DO create jobs....just not where you want them to be  (Read 533 times)

Cain

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To be more exact, it creates jobs overseas and in the financial services sector

http://www.ft.com/cms/s/0/9e6a18ec-c019-11df-b77d-00144feab49a.html

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The tax cuts’ two bills, in 2001 and 2003 – changed laws so that personal income tax rates were reduced, exemptions for the Alternative Minimum Tax increased, and dividend and capital gains taxes also cut.

Yet in the debate, it seems of no moment to either side whether the tax cuts were effective in achieving their goal of spurring business investment and making the US economy more competitive.

Our own examination of US non-residential investment indicates that the reduction in capital gains tax rates failed to spur US business investment and failed to improve US economic competitiveness.

The 2000s – that is, the period immediately following the Bush tax cuts – were the weakest decade in US postwar history for real non-residential capital investment.

Not only were the 2000s by far the weakest period, but the tax cuts did not even curtail the secular slowdown in the growth of business structures.

Rather, the slowdown accelerated into a full decline.

This would seem to be obvious, to me.  If I was investing, I don't really give a shit about nationality or helping the nation or any of that sentimental pap, I want a good return on my investment.  Now, since Americans aren't willing to accept Indonesian or Chinese style labour laws, wages and working conditions, chances are you're going to make more money investing in Indonesia or China than you would in the USA.  Surely this is just common sense?

Disco Pickle

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Re: Tax cuts actually DO create jobs....just not where you want them to be
« Reply #1 on: October 06, 2010, 02:53:45 pm »
Which is why guys like Jim Rogers moved his family to China and began selling his dollars and buying yuan.

I read someone mention this before: that wealth has been moving west around the globe.  London, then New York, (fuck California, you can skip them) now Beijing will be the great center of wealth and investment.

Not sure how much was speculation and how much was based on hard evidence, but it makes for a good hypothesis.
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