In 2004, Congress passed the Tax Cut Jobs Act. Republican Senator of Nevada John Ensign said it would “strengthen the financial stability of U.S. companies, for expansion, for new hires and for research and development.” He said it would be “common-sense legislation” and “the creation of more than 660,000 jobs..”
The idea was companies would bring money from offshore accounts, and the tax cuts would incentivize companies to higher workers.
An example of how the 2004 bill didn’t work whatsoever was Pfizer. Pfizer closed factories and fire more than a third of its employees, and fired 41,000 employees. Another was Hewlett-Packard, who brought home $14.5 billion from offshore accounts, and than fired 14,000 employees.
The 2004 Tax Cut Jobs Act gave us a negative 100,000 jobs… Good thing we learned from our mistakes.. Oh shit! We didn’t!
In 2017, our government passed the Tax Cut Jobs Act of 2017, Fuck!
According to a report by the United Nations, “the 1.5 trillion in tax cuts in December 2017 overwhelmingly benefited the wealthy and worsened inequality.” The U.N. also notes “the United States has one of the highest poverty and inequality levels among the OECD countries, and the Stanford Center on Inequality and Poverty ranks it 18th out 21 wealthy countries in terms of labour markets, poverty rates, safety nets, wealth inequality and economic mobility.”
It implies in the name 2017 the Tax Cuts Jobs Act that it would create more jobs. The logic goes that with businesses not having to pay as much taxes, they will be able to hire more workers. This is supply side economics, this doesn’t do anything to the demand side of economics. Second of all, the corporations haven’t and will not hire more workers. Instead, corporations have given shareholders a record $1 trillion worth of stock buybacks (money manipulation) this year, or have even laid workers off.
According to the Institute on Taxation and Economic Policy (ITEP); by the end of 2025, $2 trillion of the $10.6 trillion of tax cuts will go to the 1 percent. ITEP has calculated that from 2001 through 2018, “significant federal tax changes have reduced revenue by $5.1 trillion, with nearly two-thirds of that flowing to the richest fifth of Americans…” From 2000 through 2018, our national debt is at $15.7 trillion, and almost two-thirds of that has been from wars and tax cuts.
America has been doing this tax dance since the turn of the century, and it only works for the rich. Republicans in office say they care about the debt, but they don’t. Only when it’s a Democrat in office.
Information for the 2004 Tax Cut Jobs Act came from the book ’The Fine Print’ by David Cay Johnston…
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