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Job creation? I am not seeing it.

July 1, 2010

I am curious to know how people feel about this. We’re getting ready to be hit with massive tax increases and I am curious, in this economy, how anyone can see this as helpful to our economy? How does anything in this create jobs, help create jobs, or help KEEP jobs?

I get that the publication is obviously Republican biased based on some of the comments included, but putting that aside how does this help people like me, who own and invested in their own company, create jobs?

35 Comments leave one →
  1. mjbuchanan80 permalink
    July 1, 2010 9:56 pm

    Link’s broken Curt

  2. July 2, 2010 8:39 am

    Dear Curt,

    I agree. There is no job creation by the Dems and Obama.
    Hopefully in November 2010 all the incumbents (especially the left wingers) will be booted out. I will vote Republican as I always do and send a little money to the people running against Reid in NV and Pelosi in CA. In 2012, even Mickey Mouse could defeat Obama and I will send lots of money to Obama’s opponent. Obama is a Jimmy Carter retread …and worse.

    No jobs, big debt building, an environmental disaster in the Gulf caused by the environmentals and the likes of Obama, Pelosi and Reid, and lawlessness on our southern border with terrorists, drug cartel members and illegal aliens flooding in. All the time, Obama is blaming Bush…..when will he grow up and be a man. He is a child with no management experience!!!!

    Ray

  3. July 2, 2010 6:27 pm

    Curt,

    I’m normally not given to conspiracy theories, nor am I much of a Republican. I’m a Libertarian with a subscription to “Reason” and a small donor to the Cato Institute.

    That said, the only plausible reason I can see behind the actions of Congress and the Administration is a deliberate attempt to bankrupt, then reorganize, America.

    In kinder moments, I wonder if they see this as the only way to step back from the unfundable handout culture government (Democrats AND Republicans) have created in the last half-century. Once the economy is entirely in collapse, then the government can finally begin walking back entitlements, unfunded public pensions, outdated subsidies and the like. It’s also not outside reason to think that by deliberately driving America into decline, some other power (the EU? China?) will be allowed to become preeminent, thereby giving some dangerous non-state actors a new target to harrass.

    However, these are thin suppositions, and I generally can’t scretch the bounds of credulity far enough to allow for any of the above to seem truly plausible.

    Generally, my more cynical nature simply says “open your eyes and see what IS”: a corrupt, incompetent political class that’s solely concerned with its own power, wealth and social status, which protects these things by continually placating the masses with red-meat rhetoric and table scraps. Meanwhile, they continue to husband power through an age-old patronage system, where generous campaign support is rewarded with contracts, access and cold, hard cash. While the world heaves and quakes in their midst, they simply cry “RACISM!” or “SOCIALISM!”, then retreat to their vacation homes on the cape, their cocktail socials in the capitol or their “fact-finding” junkets in Grand Cayman. We are coming into a situation analogous, if loosely, to the final years of Czar Nicholas II of Russia; they feast and frolic in their little bubble world, oblivious and uncaring if the suffering, rage and pain directly outside their doors.

    The irony in all this, which most of us refuse to see, is that we have NOBODY to blame for this state of affairs except ourselves: The American voter. We spend our free time not doing research on social or economic issues, not exploring the backgrounds of the people we vote for; we spend it watching the Sox, or playing WoW, or getting blitzed, or clubhopping… our diversions are endless. In the end, we allow corrupt party machines to place pliable, spineless apparatchiks on our ballots, while we mutely file into the cubicle to pull the lever on a candidate on no other basis than the (R) or (D) in front of the name. Thus we fall from Jefferson, Adams and Lincoln to Clinton, W. and now Obama. Well played, voters of America. We discovered we could vote ourselves benefits, and now we’ve sold the soul of our nation in return for a government check. Cash your check, shut up and vote for this guy.

    It’s so incredibly discouraging.

    If the political class really wanted to fix the economy, there are basic, if painful steps to restore investor confidence, stabilize the currency and cause enough of a rebound even with just the announcement of certain measures to kick-start job creation in most sectors of the economy. That government specifically enacts policy contrary to these steps leads me to believe their intentions are nefarious.

    Whew! Sorry so long. Politics makes me rant.

    • July 5, 2010 9:31 pm

      Nate,

      You are absolutely correct in the lack of research on social and economic issues. The danger lies in getting caught up in modern day ping pong between Fox and Cnn. The real issue is much larger and completely unfixable if we stay focused on this two ring circus. Honest people see the world through an honest prism. This will be our downfall unless we come to learn that this isn’t a case of mismanagement, but an agenda of deceit. To be successful we must get up to speed on what is actually taking place so as to be able to ask the correct question and find a remedy. Thanks, P

  4. empirelady permalink
    July 3, 2010 8:40 pm

    Curt,
    I am sorry but I have no sympathy for someone in your postion being upset about higher taxes or the creation of jobs. My heart also does not “bleed” for the Republicans who complain about the Democrats causing problems. For starters,the reason that we are in this economic mess is because we were in a mess when President Obama inherited it from President Bush,a Republican who put us there in the first place. It was handed to Obama but caused by Bush. President OBama is trying to do the best he can with a horrendous situation and those who are in this scary economic situation are getting no support from the Republicans,at all. Second of all,you speak of higher taxes but the higher taxes will only be for the very wealthy and if you fit into that category,you have NOTHING to complain about. Think about the people whose unemployment benefits have ended and they cannot get an extension because the Republicans are blocking a vote-not voting against an extension but saying that there should not even be a vote. The Republican Senate is not allowing the passage of a bill that would extend unemployment to those who need it. Think about all of the people who because of the unemployment stopping,or even when they had unemployment,have to worry about having enough money to buy food,have medical care,and pay for a place to live. Think about the people who are afraid of losing their house,or are losing their house,are afraid that they will not have anything to eat,or be able to get medical care for them,their family. The Republicans live up in a tower and fail to see the people below who are struggling every day just to survive. I am here in New York City and we have an unemployment rate of ten percent. Ten percent! Do not get me wrong-I have great respect for you,admire you greatly,always have and always will,and I value your opinion greatly but when someone,as wealthy as you are,says something like it is unfair that you will have to pay higher taxes,think of the people who struggle economically,people who would be HAPPY to be in your tax bracket,would be happy to have as much as you have. If your paying a little bit more in taxes(and believe me,New York City has higher taxes than most places;this past April I paid city,state and federal taxes)can help the less fortunate just a little bit,then you,who always gives so much to others,are such a charitable person,a caring human being,you of all people should understand. I know that you can sleep at night but for some of us,like me,the worries of the economy keep us up at night. I worry that my sister’s husband in New Jersey cannot find a job. Are you going to hire him? or worry about people like him? So my question to you,and I would really love to know your thoughts on the matter,is that if higher taxes is not the solution to the problem,what is? What would you suggest be done? This was something that was broken by President Bush and needs to be fixed. You tell me:how do you propose it should be done?
    Donna,New York City

  5. superjax permalink
    July 4, 2010 11:03 am

    Stop whining and pay your taxes. That’s the due bill for living in the greatest country in the world. As for job creation, obviously you have jobs or you wouldn’t be worrying so much about how to be tax-dodgers. Maybe y’all should stop drinking so much tea and going to parties and think about what today, July 4th, represents. The price of freedom is eternal vigilance what you owe on April 15th.

  6. superjax permalink
    July 4, 2010 11:04 am

    Stop whining and pay your taxes. That’s the due bill for living in the greatest country in the world. As for job creation, obviously you have jobs or you wouldn’t be worrying so much about how to be tax-dodgers. Maybe y’all should stop drinking so much tea and going to parties and think about what today, July 4th, represents. The price of freedom is eternal vigilance and what you owe on April 15th.

  7. July 5, 2010 4:55 pm

    Curt, It is important to remember that in a free society, jobs are generated out of the private sector, not the government. To scan the horizon and try to identify what is needed is what we should be doing. Clearly one industry would be alternative energies since we are energy dependent. The trouble here is that we are looking to government for the answers, and that can and will become our definition of Sozialism. ” Show me what a population will submit to and I’ll show you the exact amount of control that will be imposed upon them”. This is where we find ourselves today. Trying to fix the ridge line of the house instead of noticing that in our history exist a cracked foundation. How cracked? Well it was a very big crack! A treasonous one actually. It happened in Dec. of 1913. While most of congress had gone home. A corrupt Senator from Rhode Island by the name of Aldrich got a bill passed on that Christmas Eve that handed over the issuance of this nations currency to private banking interests outside of this country. Wilson passed the measure because being and honest man he thought it would stabilize the banking industry. On the contrary, we were immediately plunged into war. Who stood to benefit? These same bankers of course. We’ve spent the entire 20th century and into the 21st being exposed to this same scenario. Why in the world would these bankers want a strong America when they can reap enormous profits by financing us into war after war. Keeping us distracted by those wars. Fighting amongst ourselves on issues of whether or not we should be involved in this war or that country. And all the while the national debt spirals out of control. To whom we ask? Well, to these same families that started a private banking corporation called the Federal Reserve. Unfortunately, we have stood and watched while industry after industry has left this country. Why would the bankers want this. Because they finance the other side as well. In both industry and war. No one stands to attention in times of success. But when they pull the rug out from under us…. everyone wants to know where those jobs are. Those jobs are not going to come back to this country so long as we have corrupt congressman that are afraid of these bankers. As long as we have corrupt presidents that push forward a Sozialism agenda.
    I know these seem like harsh words so I’ll leave you with this: Thomas Jefferson said; I fear international bankers more than standing armies. Also, “I predict future happiness for America if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.
    We are a nation of great men and women. However, we are facing an unseen foe. We have been exposed to the greatest ruse ever perpetuated on a populace in modern times. It is a very bitter pill to accept what I’m saying. Until this wrong has been undone and this country benefits from the printing of it’s own currency. We will not see any jobs on the horizon….. It would not benefit the bankers to strengthen us. Remember, they make their money from financing both side of wars. Not from car loans. They hold this nation as slaves because they print it’s currency and loan it to us at interest. This has been played out time and time again through out history. “The Creature From Jekyll Island” is a great place to begin understanding what has happened… Thanks for reading this post.

  8. July 8, 2010 1:12 pm

    These sorts of musings always give me chills. I don’t think there’s a plot to overthrow the government by some politicians. After all that would take some thinking on their part. -N.P.

  9. shadowwar permalink
    July 9, 2010 12:55 pm

    Nothing in there does what you ask. Everyone know’s it, but noone’s will to actually face that reality and instead, wrap any conversation about it in platitudes.

  10. July 15, 2010 11:15 am

    Curt,

    Our fraud of a senator, Scott Brown, just helped pass further govt regulations in this financial reform bill. Part of this Bill allows for Obama to sieze a private enterprise if he deems it too big to fail. You need to challenge Brown in the 2012 primary Curt.

  11. July 15, 2010 6:18 pm

    Hi Curt,
    Completely unrelated to the post, but felt compelled to write; I’m re-watching at the moment, “Reverse the Curse of the Bambino” on HBO.

    Still gets me all emotional.
    Thanks for the memories…. truly.

  12. July 16, 2010 7:36 am

    Curt,

    Let’s go Friend! We need to hear you take a stand on that fraud, Brown! He sold us all out!

  13. lionking1 permalink
    July 17, 2010 11:27 pm

    The jobs have been sent overseas. No country can be a world power without an industrial base (See England after 1945). All we do is make silly stuff these days, like useless video games. How in the world does that expand the economy, except for kids expanding their waistlines sitting on their fat butts all day? The USA’s jobs are being shipped to China, Mexico, ect. It’s part of the one world government scheme cooked up years ago by who knows who. Listen or read Pat Buchanan, a true conservative. He knows.
    Curt, you’ve fallen for Voodoo economics. It won’t work this time. Demand is the problem, not supply. Tax cuts didn’t in 2001 and 2003. It works when assets being held for long periods of time become unlocked, like in the 1980s. They are not there anymore. You want to cut taxes, but what are you going to offset it with? List your cuts… and begin with entitlements. That’s when the money’s at and how to get the budget under control. And again, it hurts demand while you’re pumping up supply. You nust cut $4 for every $1 of tax cuts. Tell that to Jon Kyle, a nut that doesn’t understand basic mathematics.
    We’ve had 3 Depressions in this country’s history, and each time it took 6 years to recover. We’re in year 3 now.

  14. ctredsoxfan permalink
    July 19, 2010 7:15 am

    Nothing this administration is doing is helpful to our economy and I’m getting sick and tired of all the blustering they are doing, hoping that the American people are going to be foolish enough to buy into it. Every day it’s something new.

  15. dude58677 permalink
    July 19, 2010 6:25 pm

    A universal wage tax is unconstitutional and the 16th amendment doesn’t change this fact. The 16th amendment was proposed by President Taft as a corporate 2 percent income tax. It was passed in by both Congresses in 1909 and ratified by 3/4 of the States by 1913. Then for the first time in 18 years, the Democrats took control of Congress and a Democrat President took office. His name was Woodrow Wilson. The Democrats proposed a wage tax and enacted the Internal Revenue Code but even with this, the tax only applied to 1 percent of the population. During World War 2, the federal withholding was signed by a FDR, of course a democrat and now the tax applied to all Americans. This tax burden incrased over the years and the history of the 16th amendment was further distorted by the media every April 15th, public schools, and federal courts. This distortion does not make it constitutional nor legitimate. Sadly, people like Wesley Snipes have been thrown in jail. Also the 16th amendment does not change what taxes can be used for and it is for the few limited powers of the federal government, so it still would not apply to most Americans anyway. The only way to stop this is to get the American people to wake up, whether it is with jury nullification(aquitting anyone accused of “tax evasion”), boycotts of H&R Block, or outright civil disobedience and of course Tea Party activists getting elected.

  16. tbaltimore permalink
    July 20, 2010 4:17 am

    I don’t see much of anything the government has done in the last year or so creating jobs. Maybe they’ve created some, but we’ve lost just as many it seems as the recession took its toll on businesses.

    Truth be told, the increase in taxes is likely a result of trying to do a little to offset the budget deficit. And you can’t lay the blame on either party solely. They have both had a sizeable hand in creating the ridiculous budget deficit they are currently working under.

    Around here in the TN/GA area, all you see on TV as far as candidate commercials go, are Republican candidates talking about how they need to cut spending, and cut off “Obama’s” funding. I can’t think of anything more ridiculous.

    1) Congress has more of an impact on budgetary spending than the President, so laying it on Obama is a cop-out. Doesn’t matter what party he’s from.

    2) None of these candidates say HOW they will cut spending. The questions of what, when, where, and how remain unanswered. Nevermind the fact that I just can’t believe a “rookie” congressman or congresswoman in DC for the first time could have much of an impact on budgetary spending.

    3) None of these candidates says anything about creating more jobs and how they might do it, with this being quite possibly the biggest issue facing politicians right now.

    4) None of these candidates says anything about other important political issues. They are basically running on an anti-Obama anti-Democrat sentiment without much substance to their campaign.

    Now, this isn’t a bash on Republicans alone, I really don’t think you’d see anything different were the tables turned.

    I’ve become increasingly cynical of the American political system, and of the party system we are currently stuck with. It just doesn’t work for the people. What we need is some politicians with common sense and enough intestinel fortitude to do what’s right for our country, our people, regardless of what any party stands for.

  17. bigbowlofsauerkraut permalink
    July 22, 2010 4:19 pm

    Curt,

    You are against increased taxes but you are willing to let the tax payers of Rhode Island support Studio38 moving from Massachusetts to Rhode Island.

  18. scottzimm permalink
    July 26, 2010 9:48 am

    @ natefrancis

    Well said…

    The Republicans cut taxes but do not cut spending. The Bush Adminstation expanded government by 70%. They simply pay for their programs though the printing press, which is basically taxing us through inflation. Giving the Republicans control of congress in November will not fix the countries economic problems. Until the country wakes up and realizes that the foundation of the economy should be production and savings, not consumption and debt, we will be in a mess.

  19. griz05 permalink
    July 26, 2010 12:53 pm

    Before I start, I know it helps to know which side of the fence a blogger is coming from. I’m 100% independent. I’m not conservative or liberal because I think if you throw all your policies completely into either, you are leaving yourself open to huge problems like this.

    Serious state (and local) government budget deficits leave a need for an injection of funds from somewhere. I HATE paying taxes as much as anyone, but I would also hate to see tax-funded services go away. Its the old adage of, “if you want to cut taxes, which gov’t services do you want taken away?” and no one has an answer. Aside from gov’t run services, the gov’t is spending stupidly elsewhere, but that is a different topic.

    Not a fan of Bush or Obama, but classic example is when Bush implemented his tax cuts then started 2 extremely expensive wars. So he triggered more spending while cutting the money to pay for it. Doesn’t make sense. Its like dual-income household where one person loses their job, so they go out and buy a more expensive house.

    I dont think the gov’t has a better idea of where to get the money than to raise taxes on the people who already have it. Reagan did this and no one seemed to bat an eye. In fact, I think he did it like 6 times.

  20. xenexprime permalink
    July 27, 2010 3:08 pm

    I also do not see how you going to Rhode Island with 38 Studios and sucking $75 million off of tax payers money is helpful to our deficit or creating smaller goverment, but as usual Republicans talk but never apply the nonsense they talk to themselves.

  21. Lucyinthesky permalink
    July 27, 2010 7:23 pm

    “people like me, who own and invested in their own company”

    Your “company” is four years old, whilst this Presidency is less than half that.

    In that time you’ve shipped precisely _zero_ products. You have to actually ship something – anything – to qualify as a “company.”

  22. July 28, 2010 3:03 pm

    Hmmm…if you work for Halliburton there’s ‘jobs created’ by the current situation. Doesn’t a war stimulate the economy? Doesn’t it create jobs? There’s plenty of ‘jobs’ in Iraq. The GOP has no problem with continued spending in that disaster yet refuse to spend fractions of that domestically. “If we can find money to kill people, we can find money to help people”

  23. jddmegop permalink
    August 4, 2010 12:10 pm

    Curt –

    Would you be willing to endorse a fantastic GOP candidate in Maine’s First Congressional District? Dean Scontras is a conservative, common-sense candidate for US Congress, and is seeking to replace a Pelosi-clone in Chellie Pingree. I would very much like to see Dean win; and he needs all the help he can get. I know your endorsement would make a tremendous difference in Red Sox-loving Maine. Please consider contacting Dean to see about endorsing him.

  24. rska884 permalink
    August 11, 2010 9:44 pm

    I want to start this post by saying that I am definitely liberal in my politics, but to clarify that by saying that I truly do understand (most) of the arguments on the other side, especially economically. Although I do not agree with them, I understand where they come from, why someone WOULD agree with them, and that there are facts supporting them.

    That being said, I completely fail to see that from you about the liberal side. To start with, some facts. The “massive tax increases” you point to, I’m assuming, are the refusal by the Democrats to extend the Bush tax cuts, which has been billed by the Republican party as the “largest tax increase in American history”. I assume this because neither the Obama administration NOR the Democratic leadership in Congress has proposed any other tax increases in the two years since taking office. The fact that I want to mention here is specifically that all but the top 10% of the tax cuts are being extended, resulting in a tax “increase” of 830 billion dollars over the next ten years, all of which is being paid by the richest Americans.

    Meanwhile, to talk about the job creation part of it, there is a major part of economic theory that states that economic stimulus needs to begin at the bottom of the pyramid, not at the top. This opinion disagrees with the “trickle-down effect”, because it believes in the opinion that the richest people, who benefit from the tax cuts that are being ended, choose to save their money, since they don’t have as much incentive to spend it. Meanwhile, those at the bottom of the economic food chain HAVE to spend the money they get back, because it goes directly to the basic needs of their lives, allowing the money to continue to circulate through the economy, which, in turn, allows the businesses that receive those payments to create more jobs.

    I understand that it is not the opinion held by all economists, but to claim that this aspect of economic theory doesn’t exist, or that these sort of “tax increases” will fail to “help people like me” is either intentionally misleading or ignorant. Feel free to continue to disagree, but please do some research on why the other side may have a point before calling them stupid.

  25. jimigoodmojo permalink
    August 13, 2010 3:06 pm

    Saying that we, incorrectly implying all Americans, are about to be hit with “massive” tax increases puts me off to the point that I am having a hard time listening to the argument that the actual proposed tax increases could hurt job growth. The actual proposed tax increases, as I understand them, are aimed at the top 5% of wage earners whom benefited the most from tax cuts that did nothing to help us avoid the worst economic downturn since the great depression.

    You can tell that I’d have a hard time being convinced from the way I interpret the truth, but I can say that I could be convinced given a good argument and not half truths and fear mongering.

  26. firestryke permalink
    September 3, 2010 6:07 pm

    Where to begin with this….

    Let me start with saying that I am a big fan of yours, ever since you announced years ago that you played EQ. I am a gamer myself and was intrigued that a professional athlete like yourself had the time to “jam” out on some MMORPGs. I am also a Yankees fan and a Democrat. Neither of these has stopped me from cheering you on over the years and that story a while back from that crackpot who said you faked your ankle injury really pissed me off. I watched that entire series on the edge of my seat and will never forget it. You are a true champion.

    Now that the niceties are finished…

    First of all, when Republicans voted for these bills they had to use reconcilliation AKA the “nuclear option” to pass it. They were so unpopular at the time, it also required VPOTUS Cheaney to cast the 51st vote to break the tie, with a Republican controlled congress. The names of these pieces of legislation are called Economic Growth and Tax Relief Reconciliation Act of 2001 and Jobs and Growth Tax Relief Reconciliation Act of 2003. Note the reconcilliation in the titles. Because reconcilliation was used it had to have a 10 year sunset provision to sidestep the Byrd Rule. So someone could say that Republicans voted 10 years ago to raise taxes in 2011, and the statement would be true. So to keep things honest and legit, these were temporary tax cuts that had expiration dates and to call them “the largest tax increases in history” is being disingenuous.

    As far as the Republican mantra of “job killing” taxes, when these tax cuts expire it will return the tax rate to the same rates under President Clinton. During the Clinton administration, more jobs were created than under Ronald Reagan, George H.W. Bush and George W. Bush COMBINED. ( see http://en.wikipedia.org/wiki/Jobs_created_during_U.S._presidential_terms ) Even if you go by the lowest numbers claimed by the CBO (1.6 million) President Obama has already created more jobs than his predecessor. These are the facts.

    As far as which ones will be allowed to expire is still up for debate. President Obama has stated they plan on extending the middle class tax cuts, but will let the tax cuts for individuals making over $200k and couples making over $250k expire. So I don’t think anyone can truely say what will and what will not be extended at this time. Politics is filled with so much dis-information these days that it’s hard to keep up.

    And to Raygallup1944: You should check a few different sources for your information. Environmentalists are responsible for the Gulf oil disaster? BP blames their own engineers dude: http://www.bloomberg.com/news/2010-08-30/bp-internal-report-said-to-find-engineers-misread-gulf-well-test-results.html Lawlessness on our southern borders and out of control immigration? You do realize that illegal immigration is down over 60% since 2007 right? http://online.wsj.com/article/SB10001424052748703882304575465742670985642.html?mod=googlenews_wsj You do know that there were no REAL beheadings in AZ right? http://www.youtube.com/watch?v=AL5KQ4Ao0ro&feature=player_embedded I mean c’mon, let’s deal with reality here.

  27. September 7, 2010 2:46 am

    Curt —

    Listening to your complaint, I’m struck several thoughts.

    The first is that it was my understanding that you, as a card-carrying right winger, are supposedly against government support. And yet implicit in your “question” (it’s really a complaint, but I’ll run with the premise) is an assumption that it’s government’s job to save your bacon. So there seems to be a disconnect.

    Secondly, your question contains an inaccuracy. There are no “massive tax increases” in the works. The top two percent are about to see their marginal tax rate (the rate charged on income over $250k) go up 4%, to just under the rate in effect under Reagan, your supposed demigod of ‘trickle down’ economics (a/k/a ‘voodoodoo economics). You probably don’t recall this, but the mechanism for that minor increase is the expiration of a law that was negotiated as a 10 year temporary reduction — a compromise made by the prior administration. There’s something callow and unsportsmanlike about whining about a deal your side made. You act as though you’re entitled to the rate forever. The Republicans made a deal — man up & accept that it’s time to pay the piper.

    Finally, though I know you’ll never admit this, the reason that taxes need to go up is that your good buddy, Dubya, financed his little “expansion” with massive deficits and a policy-driven asset bubble the likes of which hasn’t t been seen since Herbert Hoover presided over the run-up to the Great Depression. Now Obama is left to clean up the mess, and rather than having a little bit of moral character and acknowledging that they created the mess, the Right is more invested in scoring political points than in helping the country.

    I don’t give a rat’s ass about your “bloody” sock, Curt. Your take on economics and policy may have impressed the gang in the bullpen, but they really don’t make all that much sense here in the Athens of America.

  28. techsoldaten permalink
    September 7, 2010 4:53 am

    To answer the question “how can anyone see this as helpful to the economy?”

    I can. The logic that tax cuts automatically lead to job growth is specious. A balanced budget is far more beneficial to consumers, as it reduces long term debt and increases the value of the dollar (which, in turn, provides more spending power in international markets and increases the value of the goods we sell).

    We cannot operate on debt alone. 10 years of deep deficit spending is impacting the economy more than any tax cuts. Essentially, deficit spending in support of lower taxes is a way for the federal government to subsidize the purchase of consumer goods in the US. Eventually, it leads to severe inflation based on devaluing the currency unless taxes are collected to pay off debt.

    If Americans want to pay lower taxes, we should start fewer wars and focus our spending on offering services that provide for the most vulnerable members of our society. This has a direct impact on job growth.

    Before anyone starts complaining about government programs: they have already been cut. My father is recovering from a stroke in the state of Maryland. 10 years ago, he could have depended on assistance from the state in terms of transportation to and from therapy. There is now a 2 month waiting list for assistance from the Department of Aging. DoA operates on a county level and will not transport him to therapy, which happens 10 minutes over the county line.

    He was working right up until the day of his stroke. He gets no worker’s compensation because, as a bus driver, he was considered a contractor even though his employer paid unemployment insurance for him. He is not qualified for any other form of state assistance and would be homeless and bankrupt if I was not intervening to the tune of about $3,000 a month.

    I am a small business owner and have to participate in his therapy for over 20 hours a week during normal business hours. I would hire someone to assist him, but the symptoms of his stroke are challenging to deal with and require trained medical personnel. The costs of hiring a nurse for professional care are prohibitive and this is not something his health care plan covers.

    My company is enjoying a profitable year, and we are hiring on 2 people this month. If I was not dealing with my father’s situation, we would probably be hiring 6. I have missed out on numerous business opportunities because of time constraints – literally, I cannot respond to RFPs at the rate required because I am providing day to day care for a loved one. The opportunity cost is staggering.

    This is a gap the free market system is poor at addressing, the challenges I face are not unique and personal challenges like this are a major cause of business failure in the US outside regular market forces. It is a role which government has addressed itself in the past and is not currently being served. The Department of Aging was reliant on state and federal resources in order to provide services to seniors, and their funding is less than 10% what it was 10 years ago.

    The point of this story is not to make some ideological point about the role of government. The point of this story is that there are 2 sides to the equation of taxation. If the economy is suffering, offer the right amount of services to free up people like me who go out and build the companies that provide the jobs people need. And do it in a manner that provides dignity to the most vulnerable members of our society, because no one is going to be able to focus their mental cycles on business when their loved ones are suffering.

    This is the point I never get about anti-tax arguments. At some point, you have to have balance in your economy. Trying to measure that balance with dollars alone is insufficient given all the real world issues people have to deal with. Opportunity costs are what actually matter, and the lack of an infrastrcture for addressing more than bare-bone subsistance level issues for healthy workers is a poor way of providing an environment for economic growth.

  29. arrowrest permalink
    September 20, 2010 10:21 pm

    Actually, I have a go at this.

    First, the statement from ATR website that these are the largest tax hikes in history is factually incorrect. The largest tax hike in U.S. history was in 1942 when FDR had to raise rates across the board to fund the war effort in World War II. As a matter of fact, the largest tax increase since 1968 was in 1982 when Ronald Reagan had to raise taxes to help bring down the ballooning federal deficit. What is happening when the Bush tax cuts expire next year is that we’re merely returning to the rates we had at the end of the Clinton administration.

    Second, there’s not much evidence that federal tax cuts actually lead to job creation. For instance, the Bush administration cut federal taxes yet only produced a net of 1,000,000 new jobs from 2001-2009. Even before the downturn, the Bush administration was on track to only create 3,000,000 new jobs; compare that to the Clinton administration where 23,000,000 new jobs were created between 1993-2001 when federal tax rates were higher. You can even compare other administrations and see similar results. Having a sound financial footing for government balance sheets actually impacts positive job creation more than tax cuts.

    What’s happened the last 9 years is that we’ve financed two wars through nothing but massive borrowing, adding something like $4 trillion to the national debt. No war bonds, no tax increases, no sacrifices except for our armed men and women. We’ve never done that in our entire history. We need to start shouldering the burden and that means making sacrifices to get our government finances back in order or things are going to spiral downward even further. We’re talking about a 4% increase on the top rate to 39%. If people in the top brackets think that’s tough then I suggest a look back in history — under Eisenhower it was 91%, under Kennedy through Carter it was 70% and under Reagan it was 50%.

  30. acumen44 permalink
    September 28, 2010 12:57 pm

    Your statements could not be further from the truth Schill. 1st off stop lying about the massive tax increase, its so dishonest and really shows how far some people will go to not pay any taxes. There will be NO tax increase for anyone making under $250k and this would restore the Bush tax cuts to the original, Bill Clinton Admin. level. So I guess the rich who ruined our country for the past 40 years will have to pay their fair share. Right now under the current tax system the top 40o riches people pay the same rate as a person making 50k-80k. That seems a little ridiculous.

    Now to your second incorrect statement linking Job Growth with tax cuts. This is such a freaking lie its insane anyone still believes this. 1) tax cuts have the OPPOSITE effect on job growth. When Bush started in his first term his unemployment rate was 3.5%, after passing his tax cuts the unemployment rate went to 5.5%. So the opposite happens.

    Why people in America refuse to pay taxes is incredible to me. How are you local schools these days? Ranking 34th in industrial countries in education is OK with everyone? How are your infrastructure looking? Do you like living in neighborhoods without the proper number of police or fire personnel?

    The Patriotic thing to do is pay your taxes.

  31. September 30, 2010 2:31 pm

    I read the article, and most, if not all of it, is incorrect. Being a conservative Independent (I voted for Scott Brown), I like to get all of my facts in front of me before making a decision. With that, go read the following article which explains in detail how the tax “increases” will work. http://money.cnn.com/2010/09/24/news/economy/taxvox_bush_tax_cuts/index.htm

    As an example, take the Capital Gains tax. It is not a blanket increase on Capital Gains, but on Dividends – not selling stock for a profit. As for the Death Tax – that was planned to expire before Obama was even thinking about running, and there is still debate on ending it.

    Unfortunately, due to my income bracket (or fortunately however you want to look at it) I will get hit by some of these tax increases.

    However, the middle class will not, and their taxes will actually go down. A country needs a solid middle class as its foundation (it shrank dramatically under Bush – not that that was the plan), and taxing it at too high a rate takes more money out of the economy (middle class spends a higher percentage of discretionary income they higher net worth segments).

    In any case, orders for goods and services creates jobs, taxes and tax credits for business may or may not have the extensive effect. 1 dollar spent on a “job” equals 4 more dollars in the economy (money multiplier). As an example, UTC and another company just landed $120B worth of contracts with Saudi Arabia for 2011 and 2012. Because of the jobs that creates that will lead to an additional $480B plus the $120B flowing into the US ($600B total) in 2011 and 2012.

    That is the kind of stimulus the government and the President should be focusing on. Going to our trading partners, and countries that owe the US money (did you know France owes us $2 Trillion ?) and having them order durable goods from the US in large chunks. That will create job growth and won’t cost us any money. And the government should spend money on infrastructure projects (trains, highways, nuclear power, alternative energy, broadband/internet) because that again produces real jobs and lowers the cost of living and doing business in the US. Spending more aggressively on civilian funding in areas such as nano-tech, quantum computing, bio-engineering, new fuel sources (like micro-fusion) would also create jobs and give the use a competitive advantage in the long term as well.

    Spend money on building things, get our “allies” to buy from us, and invest in an overwhelming technological advantage. That would work.

  32. October 12, 2010 4:33 pm

    Curt: Sometimes I see the way some people respond to just about anything that comes out of your mouth and delight in mocking and questioning your ideals and it really makes me sick. I geuss you have come to terms that being in the public eye and having the hutspa to express yourself can be quite disconcerting. Also I see and read how others think there answers to problems is so obvious that everyone else must be complete idiots to not see what is so apparent to them. I affectionately refer to these intellects as Blow Hards.
    With that said I would like to express my opinion about your statement claiming that “The Tax Increases” are with out merit.
    First off these increases you speak of are not actual increases. Overall the increase is more of a balancing out than an increase. Have you not seen that Trickle Down Economics is a horrid failure?
    Curt I respectively suggest that your ideals are clouding your judgement.
    As you know these Poloticians are Big Business. When Big Business runs the system it is not a system of the people for the people. The game of 3 card Monty this entity plays is addictive. The frustration one feels finds this game to be appealing and is fed by one’s passion. Take a look at this bogusly named “Tea Party”, these people that head up this party dont actually aim towards acheiving public nominations as much as they look towards elevation to cult status among these extremes. I worry that you may seek this fame as well.
    Curt if I was in a position to make decisions for a “team” I would hand you the Ball very easily. I like your style and appreciate your intellect for the most part. But please examine this; People for the most part are not against paying a little bit more. The thing that really pisses off regular folk that bring in between 38k and 125k a year is that the upper 5% dont pay as much and in fact should pay more. America first right? I dont think there is any connection between these people paying more and there ability to provide jobs in there Factories, Wharehouses and Offices.
    I know I am a bit of a Hippie and proudfuly so, but is the thought of Altruism that far out?
    I see you taking your opinions and expressing them very matter of factly. I truly respect this. However the question remains are your opinions ever evolving or is this “a Ballgame” as far as your ability to keep re-examining your stances?
    Either way you have proven your true colors as a Man and A competitor and will enjoy Cult Hero status forever more.
    -A huge Curt Schilling fan.

  33. shadowwar permalink
    October 20, 2010 9:56 am

    I commented earlier, but the recent news of THQ made me think of this post.

    The move of the company to create a new “mega-studio” in Montreal, was done in very large part because of the 37.5% tax incentives they were given there. Bilson said he would have happily made a studio in California or elsewhere in the states if a competitive rate had been extended.

    This decision by THQ is a prime example of the type of business we lose in the States because of tax laws for business. Where instead we could have had 400 new mid to high-paying jobs in the states, we lost them to our neighbors to the north. The games industry isn’t the only sector hit by these, but I found it a compelling vortex of related topics.

  34. November 12, 2010 7:24 pm

    Hi Curt. I’m a game design student who stumbled upon your love of gaming via MMORPG.com- they had an article your startup studio and was instantly interested. I was equally intrigued with your interest in economics.

    I don’t follow a party simply because I think that system is broken-if I say I’m a republican or a conservative I’m labeled an anti-stemcell creationist nutjob, when I actually support forms of that research and am a Darwinist. But that’s another story.

    I do agree with your question though. With all the talk of bureaucracy and wasteful government spending from elections past, it makes me wonder why the heck we increase taxes-especially income and corporation-related taxes. Simply put, when the people have less money, the people spend less money on nice things-therefore there’s less jobs making nice things… or shipping nice things… or making the things we use to ship and make nice things.

    Come on, it’s not like increasing taxes will cut the deficit, because that’s just more money to spend on additional programs. That’s quite honestly total bullcrap. If we actually kept the current budget and sent the money increased taxes collects to other governments, I wouldn’t cry as much foul. But honestly… the trillions of dollars that we “owe” isn’t going to be payed in long time, and tax increases aren’t going to help fix the fact that we’re (ironically) spending more then we’re making.

    If I can’t spend as much, someone else can’t make as much. It’s as simple as that.

    Mr. Schilling, I’m with you: my hands are in the air, and I’m wondering why people aren’t seeing this with their own eyes.

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