The "fiscal cliff" is apparently the only news out there these days. That's all I hear...fiscal cliff...fiscal cliff...blah...blah...blah. Both sides agree spending will have to be cut. The devil will be in the details, I understand, but at least it's a start. The sticking point is taxing the rich. The Democrats say it will bring in a gazillion dollars and help reduce the deficit. The Republicans say it will cripple job creation.
Here is my question: How will raising taxes on the rich, the "job creators", hinder hiring?
The argument seems to be that if taxes go up on the rich (actually if the Bush tax cuts aren't extended to the rich), they won't have the capital (money) to finance new entrepreneurs or fund business expansion, therefore no new jobs.
Here's the fly in that ointment....the rich already have TRILLIONS of dollars (the Wall Street Journal estimates $1-2 Trillion) sitting on the sidelines not currently invested. Our economy isn't strong enough to support all these new businesses the Republicans envision, and there isn't any place in China or Europe to invest this money either. (China is slowing and Europe is a basket case.) It just sits.
The money to invest in new job creation is there NOW. How will any MORE money in the pockets of the wealthy create any new jobs? This money has been in their pockets for a DECADE, since the GW Bush administration. So where are the jobs?
Somebody please (honest question) explain in terms I can understand how tax cuts to the rich will somehow create new jobs while the money sitting there right now can't?
The wealthy seem to like the sound of the term "job creators" and have made it their justification for existing, and their Republican puppets in Congress happily spout it every chance they get without ever explaining it.
In fairness, let me admit right now I think an entirely different set of special interests are pulling the strings on their (Democratic) puppets in Congress, too. It's a pretty sleazy game they play in Washington and you and I are the big losers. If you'll just follow the money trail you'll see who the big winners are.