On my radio show, USAprogressive, I interviewed Nick Hanauer. Nick wrote a column for Bloomberg that blew up talk shows across the country. During my interview with him, which you can hear in it’s entirety here he brought up an unbelievable point regarding job creators.
“There are two things business people work on. The first is sales, creating revenue, and the second is containing costs and what that takes the form of largely, is trying as HARD as you possibly can NOT to hire anyone.“
That ONE quote is 100% true and blows up the entire argument that businesses are the job creators. Essentially what a tax break does is increase “after tax profits.” If a business’ after tax profits increase it goes to the shareholders or business owners.
The argument that a business will use that “extra” money, or tax savings to reinvest in their business is, as John Boehner would say, chicken sh*t. A business can buy new equipment and write off the expense on the tax bill, they don’t need that reduction in tax rates to reinvest.
Raising taxes on the 1% or 0.1% would allow the government to use that extra revenue to build things like schools,town halls,roads,electrical grids and waterlines. The extra money, possibly totaling in the hundreds of billions of dollars can also be used to reduce taxes on small businesses and working people, specifically sales taxes, which are inherently regressive. There are hundreds of things that extra money can be used for, but the point is lower taxes do not create jobs.
Nick has so much money he can not possibly create the demand needed to FORCE businesses, that do not want to hire, TO HIRE. So by taxing his income more and lowering taxes on middle class people, that allows them to spend more money in HIS businesses making him wealthier.
The real anti-business party are Republicans. They continually force wages down through their ridiculous free market, free trade ideology. By decreasing wages, it takes money away from local businesses. If consumers had higher wages, businesses would make more money. Period.