Tax cuts for the wealthy don’t create jobs

by Andy Wright

July 3rd, 2011 · Filed under: Business & Innovation, Capitol news, Economy, Editorials · 2 Comments

I’m the chief operating officer of a successful Maine business.Our employees receive attractive manufacturing wages along with health insurance and a 401(k) with matching funds.

Three years ago, during the Baldacci administration we asked the state for some financial assistance to move one of our companies into a larger facility to expand from a 12-employee business to a 50-employee business. While there were strings attached (such as the need to prove that we added new, incremental, high-paying jobs), the financial assistance was provided to us from the Department of Economic and Community Development, and it was critical to our expansion.

In spite of the economic downturn, we have maintained a 50-person work force over the past three years. With the economy now recovering, we want to expand again and set ourselves up to add up to 50 more employees.

When I recently inquired to DECD about support, I was told that no funds now exist. You know, the governor has new austerity priorities. But isn’t our governor pro-business, with his highest priority to create new well-paying manufacturing jobs in Maine?

Well, not through DECD, since everyone knows that private sector jobs aren’t created by government programs, so no funds are now available.Funny, the governor is willing to give income tax cuts to the wealthiest people in Maine. I’ll be one of those who receive a big tax cut and like most others who receive this new-found money, I will save it.

To create Maine jobs with tax cuts, the wealthy would either need to spend the money locally or add an employee to a local company — something that almost never happens when you give tax cuts to the wealthiest.

There is not a shred of proof that giving tax cuts to the wealthy creates jobs. If it did, then we’d be at full employment right now after 10 years of Bush’s tax cuts for the elite…If you did not give the wealthy the tax cut and instead used the money to fund DECD for “targeted support” for private sector job creation, I would use the money to create up to 50 new high-paying manufacturing jobs right here in Maine.

Conservatives by nature only accept data that support their political agenda…What we all need to understand is that tax cuts to the wealthy are proven to be extremely inefficient at creating jobs, and government programs that are targeted correctly will be very efficient at creating new jobs right here in Maine.

by Andy Wright a successful businessman wrote this in the PPH

2 responses so far ↓

  • 1 Nicole // Jul 22, 2011 at 11:19 pm

    I’m late to this post, but brilliantly written. Thank you very much for helping me understand a little bit more of the complexity that is the finances and government of our nation. As I watch news of the debt ceiling talks – specifically Boehner walking out due to dissent over proposed tax increases – I have been wondering if lower taxes really do create jobs. Your blog post, along with others, is helping me form a fact-based opinion on the matter, and for that I’m eternally grateful!

  • 2 Why the Wealthy Cant Afford to Pay More Taxes - US Message Board - Political Discussion Forum // Aug 4, 2011 at 3:17 am

    [...] Tax cuts for the wealthy don’t create jobs [...]

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