11:15 AM EDT, July 27, 2012
The Republican Mantra of "Don't tax the rich," they create jobs!" is a fallacy. Can anyone name a single job created by the Bush tax cuts?
Businesses operate efficiently, hiring or firing according the demand for their products and services. Venture capitalists and investors are looking to make a profit. Their investment may be used for equipment to replace labor or add labor.
Stock market investors are looking for profits. Their money doesn't go to the companies whose stock they buy. Taxes affect profits, demand affects jobs.
Only charities and the federal government can create jobs without looking for profit. People hired to work on roads will buy shoes, clothing and TVs. Merchants and distributors will see an increase in business, but most manufacturing increases will be seen overseas.
This is why our recovery is so slow. The government must still tax to create jobs.
Robert McMichael, Catonsville
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