Congressman, you write (in bold letters): “Simplifying our nation’s tax code will create a healthier Michigan economy and generate more jobs in Southeast Michigan.”
What is the evidence that a simplified tax code will generate more jobs anywhere, let alone in Southeast Michigan?
Years of studies have found little relationship between tax code, tax rates or tax complexity and job creation. Jobs are created, as you know, because there is rising demand for a product or service. Absent demand, a business owner is more likely to seek options to reduce employment, or to reduce the costs of employment (such as outsourcing, offshoring, reducing work hours, layoffs, site closures and the like).
Yes, there are specific instances — generally, localized and short-term — where a tax provision increases the cost of employment sufficiently to reduce employment. Rarely has any tax provision decreased the cost of employment sufficiently to increase employment in the absence of economic demand.
Your assertion, even in bold type, seems quite faith-based. If there is evidence to support your claim, I — as your constituent — would be pleased to see it.