The republican tax cut stimulus

[Juche]

Republicans claim their stimulus will cost $478 billion and create 6.2 million jobs. The entire bill is tax cuts.

I am confused by this. How did they get these figures?

http://www.xe.com/news/Wed%20Jan%2028%2015:40:00%20EST%202009/206741.htm?categoryId=1¤tPage=10

* Cut the lowest two income tax rates for 2009 and 2010, from 15 percent to 10 percent and from 10 percent to 5 percent.

* Extend through 2010 a patch to the Alternative Minimum Tax, which was originally designed to ensure that wealthy people pay taxes, but instead would hit millions of middle-income families with higher taxes.

* Expand the $7,500 first-time homebuyers tax credit for a principal residence to all homebuyers while limiting it to purchasers who can make a down payment of at least 5 percent of the purchase price.

* Provide a tax deduction for small businesses with less than 500 employees equal to 20 percent of their income.

* Offer new tax deduction for those who do not receive tax-preferred, employer-sponsored health care coverage. And provide assistance to the unemployed who do not qualify for a COBRA premium subsidy.

* Give tax exemption on unemployment benefits and extend temporary federal unemployment benefits through 2009, phasing it out through mid-2010.

* Allow companies to write off current losses against previous tax years for up to five years. Companies now can only 'carry back' losses for two years. The tax break would not be available to banks and other companies receiving help from the $700 billion bailout package.

* Extend through 2009 a break for small businesses that allows them to immediately write off up certain capital expenditures.



I have never seen a study showing tax cuts create more jobs than infrastructure, it is always the opposite.

http://www.publicvalues.ca/ViewArticle.cfm?Ref=00265

She points to the conclusions of a recent study by the economic consulting firm Informetrica Limited.

"If you put a billion dollars into tax cuts, it will result in 5,600 jobs. If you put the money into physical infrastracture, you will create 15,800 jobs for every one billion invested. If you put the money into public services like health care, you create 18,100 jobs for every one billion invested," said Rout. (This is a Canadian study)

http://www.plantservices.com/industrynews/2009/002.html

A new study released by the Alliance for American Manufacturing (AAM) outlines how investment in the nation’s infrastructure is the most effective approach to creating new jobs. Roughly 18,000 new jobs would be created for every $1 billion in new infrastructure spending on the nation’s transportation, energy, water systems and public schools.

The report, undertaken for AAM by a team of researchers at the University of Massachusetts-Amherst’s Political Economy Research Institute (PERI) (www.peri.umass.edu), found that at least 2.6 million new jobs could be created by increased spending in a “high-end” scenario of $148 billion per year (including $93 billion in public investment). The construction and service industries will see the vast majority of job creation, but manufacturing, which has been devastated by the current economic crisis, would also benefit from such an infrastructure stimulus, seeing an increase of 252,000 jobs nationally.


In contrast to an infrastructure spending program, the report notes that competing stimulus proposals, such as tax cuts, would create, at best, only 14,000 jobs per $1 billion in spending. This means 22 percent less jobs would result from a tax-based stimulus than from infrastructure spending. This is primarily because households spend a greater share of their income on imports.


http://wonkroom.thinkprogress.org/2009/01/13/progressive-investment/

[Kittycat]

1. In the meantime, roads and bridges crumble from a lack of adequate

tax revenue, and people buy more porn.

[leftchick]

2. um

because they lie?

[Lasher]

3. We tried Republican tax cuts.

Now we are in deep shit. These Republicans must have been born without the gene that tells people when to be ashamed of ourselves and STFU.