TAXES AND JOBS
by Kermit C. Moss
Mercy me, sakes alive, and carrot coffee! The big question out there now “does increasing the federal income tax always cause a decrease in jobs, and vice versa?” My answer , the economic answer, based on many years of study and teaching economics at the college level, is a vociferous and resounding no!
Let me again remind you that economics is properly described as “one of the social sciences dealing with the production, distribution, and consumption of goods and services”. And consumption is the driving force in this equation. So anything that increases or decreases consumption will increase or decrease jobs! But does an increase in federal income taxes always decrease consumption? The answer again is a loud and vociferous no! Income taxes on the very, very rich will not decrease their consumption.
Again, we need to look at the concentration of wealth in the USA. According to late and reliable reports, the top 10% of the wealthy now own about 90% of all private wealth, and the top 1% owns an astounding 23%. They have been able to do this because of taxes and regulations that favor them, and the reason given by them and the ones responsible for setting up such favorable rules is always that they are the job creators!
Just this morning on national TV Senator Mitch McConnell, republican of Kentucky, proudly stated that in the deal to increase the national debt limit there would be no job destroying increase in taxes! Republican
Congressman Boehner said the same thing just after having told the republican house members to get their “a----” in line.
If economic ignorance is this pronounced at high government levels, it is no wonder that things are as they are! And we can’t expect employment to improve!
Kermit C. Moss
PO Box 1136
Monticello, Arkansas 71657
PH 870-367-2486 - office
870-367-7034 - home
July 31st , 2011
