Boehner's response to jobs question...I could use some help.

[Versailles]

http://www.youtube.com/watch?v=nBSmrxbjgl8

I am not very savvy when it comes to finance and economics, so I could use some help with facts and crafting a response to the answers I was given. It seems to me that if you give businesses tax cuts, that's all well and good, but doesn't hiring come from a business doing well and having a steady income, thus growth? If people aren't buying products because they are out of work, cutting taxes to businesses, large or small won't allow the business to expand but just to squirrel away more money for expansion when the economy does recover.

Again, I'm not at all well versed in economics, so any help would be greatly appreciated. Thanks!

[ejpoeta]

1. here's something to consider. when companies have taxes, then in order to

avoid the taxes they will invest in their company. if they don't have taxes then they can just keep all their money and send it overseas or offshore. we have had tax cuts for eight to ten years.... yet we lost how many jobs over that time.

[Versailles]

3. Good point.

Hadn't really thought about it that way. Basically, with all the tax loopholes and incentives to spend money on your own business, the higher the taxes are, the more likely a business is to reinvest. However, with tax cuts, that money that would have been reinvested is sent to banks overseas to hide it from future taxes. Did I get that right?

[ejpoeta]

4. yep. someone explained that on here recently and it all made sense.

it's like us. when we have taxes, we will make choices that will help us pay less taxes. rich people do the same. so do corporations. they will maybe cover health insurance because they can write it off or give bonuses? maybe. use it to improve their business? they will find away to avoid paying those taxes. it makes perfect sense. but now they can just put it in their pockets. why should they do anything else when they don't have to. and unfortunately a lot of people don't do anything unless you force them to.

[Angry Dragon]

2. To me you have it pretty much under control

[Bandit]

5. Many of those businesses are Lawyers and Doctors and such

They have a small office and will not hire anyone with any tax cut...Their bank accounts just get bigger and bigger and no jobs furnished..

[ProgressiveEconomist]

6. Trying to boost demand and job growth by extending extra income tax cuts for the top 2

percent is like trying to help the sparrows by feeding extra oats to horses!

It's much more effective to give tax cuts ONLY to small businesses who actually are hiring net new workers and or raising wages for entry-level and lower-middle-class employees. See
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9497641 .

According to the Congressional Budget Office, three other fiscal policies that far exceed extending income tax cuts in boosting output and employment are

--extending unemployment benefits;
--infrastructure spending; and
--non-infrastructure aid to States.

Next year, President Obama could use returned and unspent TARP funds to implement one or more of these superior fiscal policies by Executive Order. See
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9518706

[BeFree]

7. I'm not buying

The thing about the pubbies is that they say government is not the solution, then turn around and
place themselves in positions so that they as the government, become solution providers.

The pubbies don't care that our jobs have gone overseas.
They don't care that deficit spending has been a force for higher taxes.

They are solely stuck on one idea: Today's Profits.