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Which creates more jobs - tax breaks for rich, or tax breaks for middle class & poor?

There are some who believe tax breaks for the rich encourage investment, which in turn creates jobs.

Others believe tax breaks for the middle class & poor put more money into the hands of American consumers, which in turn creates jobs.

Which one is better suited to solve our current jobs problem?

9 Answers

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  • 9 years ago
    Favorite Answer

    The rich have had tax breaks for the last decade and they had them in the Reagan years and unemployment did not improve. That's because the rich have enough money and if given more, they just put it in offshore accounts like Romney did. They already have enough to buy what they want, so they don't spend more when they get more.

    If you give more money to the middle class, they consume stuff. That's what creates jobs. We buy food, tvs, haircuts, computers, clothes, all kinds of things. If we have more money, we will buy more things. That stimulates the economy. And if companies are encouraged to create all those things in the US instead of sending the jobs to China, it will create jobs in the US. It's basic economics. The rich won't be able to grow their businesses if they have no consumers to buy the goods and services.

    If we have to pay thousands of dollars more in taxes per family, that's billions of dollars in less spending power. Likewise, if we have all food stamp families getting $50 a month less for food, that's a ton of money taken out of the economy. And that's why we will head to a depression if the fiscal cliff happens.

  • 9 years ago

    Neither evidently. You will be paying higher taxes beginning Jan. 1, 2013 regardless of your income bracket. They are nestled in Obamacare. You will also lose the 2% payroll tax also which has been the cause of Social Security running in the red $120 billion for the each of the last two years and added to our deficit/debt. Raising taxes on the top two brackets won't even make up for that.

    The top 3% are small businesses who provide about 75% of the jobs are targeted for a tax increase. They will raise their prices and the consumers will pay their added tax and they will likely lay off more people. The added taxes will be paid for by you and me. The wealthy individuals will find more tax shelters and actually pay less in taxes. These people understand how things work. You people do not. Removing deductions and loopholes would result in them paying more in taxes but that isn't what the president is really trying to accomplish. He just wants you to think he's being fair because he knows how dumb the general public actually is.

  • ?
    Lv 7
    9 years ago

    Tax breaks for the middle class create the demand for the goods, but the goods are often made overseas. Tax breaks for the rich do create jobs, but those jobs are created overseas.

    What s needed are tax breaks for the middle class and tax incentives in the form of tax deductions for the rich who hire workers in this country as well tax disincentives for moving jobs overseas.

  • 9 years ago

    Tax breaks for small businesses

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  • 9 years ago

    We are a demand driven economy. Those who have been pretending for the last thirty years that we are not are why we are where we are today. And we now have proof. http://www.nytimes.com/2012/11/02/business/questio...

  • RS
    Lv 5
    9 years ago

    Tax the rich because they are currently trapped with this global recession. They cannot move to Europe and they cannot compete with cheap Chinese companies in Asia.

  • Anonymous
    9 years ago

    Neither- the creation of jobs relies on innovation, technology, supply and demand. The two are linked, but not directly.

    Source(s): political science teacher
  • Anonymous
    9 years ago

    rich people invest in stocks and bonds or put the money in the bank. non-stimulative, say economists

    consumers are 70% of the economy. the gop needs new talking points

  • how do the poor create jobs? oh yeah, you are one of those that believe As long as the GOVT cheese and checks flow and he gives them abortion, contraceptive on demand, legalized gay marriage, and "free" healthcare, Libs, esp. on here, couldn't care less what Obama does to the economy and the Country

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