Extending the tax cuts to the rich, i.e. those making over $250,000, surely will not create new jobs in the U. S. These cuts have been in force for quite a few years and I do not see any sign of the unemployment rate going down or any proof of business expansion do to the cuts implemented by the Bush administration. These tax cuts, the purposes of which were probably well intended, did not result in business expansion for the good of the economy and hiring in general.
Sure, if the rich continue receiving this windfall, it will simply show up in offshore accounts or in some high yield investments. The rich are the one’s who are cutting jobs or moving jobs overseas to maximize revenues and cut expenses.
The rich already have their beautiful homes, cars, boats, and summer cottages. They will not take the continuation of their windfalls to purchase the same, nor will they be expanding business and hiring more people.
I suggest that the government lets the sunset clause kick in on the cuts to those making over $250,000. The additional revenue can then be used to fund business expansion or new start-ups that major banks are reluctant to support through business loans. The Small Business Administration, in lieu of reluctant big banks, can be directed to implement programs for this purpose.
I am sure there are many Americans who have developed sound business plans who are having problems getting funding to get started. I am always reading where small business is the backbone of America. Why don’t we give them a jumpstart and see where it takes them. For those small business and individuals who will lose their rescinded tax cuts, other tax incentives can be implemented that can be tied to their business implementation or expansion and hiring.
Large corporations who started out in the U. S. as small business and grew to be multinationals have an obligation to keep much of their facilities in the U. S. True, if you are going to expand globally, you also need to expand SOME of your operations overseas where your markets are but your basic obligation is to where you are incorporated.
If we can bail out the automobile sector, big banking, and Wall Street we surely can give a boost to the small business sector that is the normal source of job growth in previous recessions.