Okay, I get that the theory is that if you give tax cuts to the wealthy and to big businesses and corporations, they will use that additional revenue to expand, creating jobs. Here’s the thing — this NEVER happens. Huge corporations have enough income to pay their employees when business is going well. It’s when business takes a downturn that you have layoffs — for example, oil prices are down right now, so a lot of people here in Houston got laid off. Giving tax breaks to oil and gas won’t help that, though; they’ll pocket the money and save it, because there’s no point in hiring a bunch of extra people so long as gas prices are still down. Their hiring patterns are dependent upon the market of their product, not how much capital they are currently working with. Where this WOULD make a difference is for small businesses, which frequently are understaffed, with many paying their bills month-to-month, just like lower- to lower-middle class families. I used to be an administrator at a small school services company, with around 100 employees (four of whom were administrators, 10 or so skilled laborers, and the rest unskilled). Whenever there was any sort of an issue, my boss would get the administrators together and we’d have the talk about how we might be closing up shop. We were always one client away from a shutdown, which would have meant 100 people losing an income they desperately needed (the vast majority of our employees were mothers, many of them single and their paycheck from us was their only source of income). We need to be giving SMALL businesses the tax breaks and a bit of additional help, NOT huge corporations. Small businesses are the ones who will create jobs here in America, and keep them here. Those are the people who are going to revitalize our economy and make the US into a producer, rather than a consumer, nation once again. These big corporations are multinational companies which will use labor where it is cheapest, and that is very often not in the United States — as Trump well knows, considering where many of his products are made.
Trump’s bold claims about his new tax plan don’t add up
Bryce Covert
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