Don't expect more jobs from this tax plan

Updated 12/4/2017 1:50 PM

By a show of hands, let's see how many are gullible enough to believe that lowering a corporation's tax rate will cause them to hire (as opposed to buying back stock or declaring extra dividends). That many; so sad.

Lowering taxes will never cause a business to hire more employees and heaven forbid give existing employees a raise. Corporation boards have a legal obligation to maximize profits and minimize expenses (translation is "as few employees as possible:).

The only thing that makes a business hire is increased demand for the product they offer or a labor shortage in the skills they need and they have to outbid the competition for labor.

The common-sense fact that flows from that is that the only way to increase demand is to put more money in the hands of the people that will actually spend it and that does not include the wealthy, who will only dump more money into their individual tax dodges. Leaving more money in the hands of the lower-level income ranges allows them to buy food, clothes, cars, washing machines, etc. (you know, the things that make life more livable) and actually creates demand which spurs hiring.

The voting base really needs to get their heads out of the sand when they do the "Rah Rah" thing. Learn to lift the rock and see what is under it before you wind up choking on the visions of sugar plums.

James Prescott


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