TAXES: They're job killers, folks
The Aug. 29 column with the headline “Taxes: Cuts don’t create new jobs” is not supported by common sense.
Here is why:
1. Most new jobs created in our country are created by investors looking for good returns on their investments, a fact backed by governmental records. Using Marriner Eccles as a reference to support a premise on current taxation is illogical. Eccles was a biased socialist who ran the Fed for FDR. His quote DOES NOT APPLY to our current capitalistic business system. Our current tax code would not exist in a socialist system so an argument about tax effects on investment can not be supported in this way.
Mr. Rowe, you seem well informed. Are you aware John Maynard Keynes’ advocate, Eccles, was a millionaire at age 22? He expanded a bank chain using investment from and affiliation with wealthy partners.
2. Henry Ford was a wealthy man. But he was also a person who cared about our American way. His development of thousands of new jobs came from innovation (assembly line) and investment of money. The job creation was twofold: His employees and creation of new jobs for suppliers created by his purchases. He did not use cash on hand; he used money from investors who saw a good potential return. Ford created a new market! NEW jobs came with that market.
3. If you are an investor, $100 or $100,000, which opportunity would you most likely consider?:
(a). Potential high capital gains taxes on what you make coupled with heavy governmental regulations, or
(b) A system that encourages investment at reasonable capital gains rates, maybe none at all, and governmental regulations for safety of workers, not suffocating unobtainable EPA regulations.
When investment opportunities are restricted and penalized, investors get out of the game. Smart money never gets in the pot without a chance at winning.
Ronald Reagan took office in 1981. Jimmy Carter unemployment was reaching all-time highs. Inflation, gas controls and shortages were the norm. Reagan worked with the House of Representatives to lower tax brackets resulting in the biggest turnaround in U.S. history. The lower brackets gave investors good returns so they got back in the “game.” JOB CREATION soared as “money” became available for expansion, innovation and repair of aging facilities. Tax revenues WENT UP as new jobs contributed to Social Security and income taxes.
Fact, not lies!
Mr. Rowe, new jobs are held back when the government discourages investors through high taxation. Their willingness to invest has a direct relationship to potential returns. It is just common sense.
“…Government in the U.S. today is a senior partner in every business in the country.” — Norman Cousins
“There is only one social responsibility of business: to use its resources and engage in activities designed to increase its profits without deception or fraud.” — Milton Friedman
Regards to a good paper!
JOHN M. CLARK
Coeur d’Alene