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Forum Post: How do we know for a fact that tax breaks for business creates jobs in the US?

Posted 1 year ago on April 25, 2012, 8:37 a.m. EST by XenuLives (1645) from Charlotte, NC
This content is user submitted and not an official statement

If we give companies with global operations (Hint: Most of them) tax breaks, then what's stopping them from increasing operations in Mexico, or just pocketing the money in investments?

There is no guarantee that any tax breaks have, or will, create US jobs. Without any stipulations on the tax breaks that we give, businesses could hire strippers for the company party with the extra money for all we know!

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3 Comments


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[-] 2 points by gestopomillyy (1695) 1 year ago

i cant believe that is even a question? its easy to see that companies have been getting tax breaks all along. and jobs have been eliminated and pay reduced. thats fairly easy to see even without research.

[-] 1 points by XenuLives (1645) from Charlotte, NC 1 year ago

Trolls and conservatives seem to think that tax breaks are some sort of magic faucet, that when the breaks are increased that jobs will just flow back into the country...

[-] 2 points by MachineShopHippie (216) from Louisville, KY 1 year ago

Actually, there's been some pretty conclusive evidence that the companies who receive tax breaks are the worst bad actors when it comes to offshoring jobs and treating their current work force poorly. But don't just take my word for it...

http://www.bloomberg.com/news/2011-06-28/can-tax-credits-create-jobs-don-t-bet-on-it-echoes.html

http://www.forbes.com/sites/petercohan/2011/05/03/do-tax-cuts-create-jobs/

Most telling quote, in my opinion:

"But corporations have absolutely no reason to complain about taxes. After all, they earned record 2010 profits of $1.68 trillion and 85% of them are beating their first quarter 2011 earnings estimates as 70% are growing revenue faster than expected while their operating margins stand at a near record 19.8%.

And companies are achieving that record profitability by squeezing workers. After all, 2010 productivity rose 3.9% while unit labor costs fell 1.5%. To get more work out of the same number of workers while paying them less, it helps to have 13.5 million people out of work and the easy ability to hire part-time labor and outsource to countries that pay much lower wages."

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