JUort lattò (Oh server
April 18. 2012
Page 9
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Invoking Fake Job Creators to Cut Taxes
Squandering an
opportunity to
rebuild America
by
R obert L . B orosage
C o n s e r v a t i v e s l ik e H o u s e
S p e a k e r Jo h n B o e h n e r say the
g o v e rn m e n t c a n 't ra ise ta x es on
m illio n a ire s and b illio n a ire s b e
c a u se th e y are "job c re a to rs." In
s te a d , H o u se R e p u b lic a n s a re
o n c e m o re c a llin g fo r trillio n s in
m ore tax cuts for the richest A m eri
cans.
T h a t's a big m ista k e . T h e "job
c re a to rs " th a t B o e h n e r d o e s n 't
w an t to tax a re n 't c re a tin g m an y
jo b s . B ig c o rp o ra tio n s a lre ad y are
re a p in g re c o rd p ro fits, sittin g on
trillio n s o f d o lla rs in c ash , an d
sh ip p in g jo b s a b ro a d . S m all b u s i
n e sse s lack c u sto m e rs , not c o n fi
dence.
B ut w ith 24 m illio n p e o p le still
in n e ed o f fu ll-tim e w o rk , an d the
w e a lth ie st 1 p e rc e n t c a p tu rin g a
s ta g g e r in g 93 p e r c e n t o f th e
g ro w th in in c o m e in 2 0 1 0 , m ost
c u sto m e rs a re n 't w illin g o r a b le to
s p e n d m o re . In th e s e c ir c u m
sta n c e s, w e 'd be fa r b e tte r o f f in
v e stin g in re b u ild in g the c o u n try
an d pa y in g fo r if w ith h ig h e r tax es
on the ric h and th e c o rp o ra tio n s.
T h e y a re n 't p u ttin g th e ir m o n ey
to w o rk , so w e sh o u ld do it fo r
them .
T his basic conservative b elief in
tax cuts is a theology based on faith,
not ev id en ce. W hen tax es w ere
raised during Bill C linton's presi
dency, conservatives predicted a
d e e p r e c e s s i o n . I n s te a d , th e
econom y boom ed and private in
vestm ent took off. W hen taxes w ere
cu t u n d e r P resid e n t G e o rg e W .
B ush, private investm ent and jo b
g ro w th w ere d isap p o in tin g . But
conservatives w on't let the facts get
in the w ay o f th eir gospel.
C o n se rv a tiv e R e p u b lic a n s also
c la im th a t c u ttin g g o v e rn m e n t
sp e n d in g c re a te s jo b s , e v e n in
the m id st o f a re c e ssio n . H o u se
M a jo rity L e a d e r E ric C a n to r said ,
"A ll o f o u r e ffo rts are c e n te re d
a ro u n d jo b s — sta rtin g w ith c u t
tin g s p e n d in g an d fe d e ral re g u la
tio n s — to g ro w th e e co n o m y so
th a t p e o p le can get b ack to w o rk ."
B ut th is is ju s t m o re n o n sen se .
C u ts in g o v e rn m e n t s p e n d in g at
the state lev el h av e k ille d h u n
d re d s o f th o u s a n d s o f jo b s as
te a c h e rs , c o p s, an d fire fig h te rs
are la id o ff an d c o n tra c to rs lose
th e ir c o n tra c ts . T h o se la y o ffs no t
o n ly h u rt th e e c o n o m y , th ey slash
se rv ic e s w e rely on.
C o n se rv a tiv e s a rg u e th a t if w e
m ak e w re n c h in g cu ts in s p e n d
in g , fire c iv il se rv a n ts, fo rc e s e
n io rs to pay m o re fo r th e ir h ealth
care an d stu d e n ts to sp en d m ore
on tu itio n , an d p ro m ise n e v er,
n e v er, n e v e r to ra ise ta x e s, b u s i
n e sse s w ill g ain the c o n fid e n c e to
in v e st, d e sp ite the re s u ltin g g o v
e rn m e n t la y o ffs. B ut w ith high
u n e m p lo y m e n t and sta g n a n t in
c o m e s , b u s in e s s e s lo o k to in
crease p ro fits, not by ad d in g w o rk
e rs, b u t by c u ttin g c o sts. In ste ad
o f c re a tin g jo b s , th e y 're firin g
w o rk e rs an d in v e stin g in c h e a p e r
la b o r ab ro ad .
T h is c o n se rv a tiv e th e o lo g y is
sq u a n d e rin g an e x tra o rd in a ry o p
p o rtu n ity to re b u ild A m e ric a. In
te re st ra te s are n e a r re c o rd lo w s,
th e c o n stru c tio n in d u s try is flat
o n its b ack , an d o u r d e c re p it in fra
s tr u c tu r e — e v e r y th in g fro m
ro a d s to p u b lic tra n s it to sew e r
sy ste m s — m u st be re b u ilt.
W e'll n e v er h av e a b e tte r o p
p o rtu n ity to b o rro w m o n e y and
m ak e the in v e stm e n ts w e c an 't
a v o id — an d p u t p e o p le b a c k to
w o rk at th e sam e tim e. B ut in ste ad
o f a m a jo r in itia tiv e to re b u ild the
c o u n try , th e c o n se rv a tiv e C o n
g ress h ad a h a rd tim e e v en p a s s
ing a sm all, s h o rt-te rm e x te n sio n
o f a jo b -frie n d ly tra n s p o rta tio n
b ill. N o "jo b c re a to r" w o u ld m ak e
th a t c h o ic e .
Robert Borosage is president
o f the Institute f o r A m erica's F u
ture and co-director o f its sister
organization, the Campaign fo r
A m erica's Future, ourfuture.org.
a‘1’f jjlurllatth (Observer
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