Slouching Towards Oblivion

Monday, July 11, 2011

Beating A Dead Horse

Sometimes you just have to keep going over the same ground, and revisiting the same arguments ad nauseum just to stay even with the epidemic of ignorance in the American Body Politic.

Repubs in general, and their PseudoCon wing in particular, just refuse to let go of their fairy tales.  Especially the one about "Tax Cuts Generate More Tax Revenue By Creating More Tax Payers".

Simply put, this is total bunkum.  I know this because while I generally kinda suck at Math, I can manage some basic arithmetic, which is what the TeaBaggers (eg) like to believe is all they need to make their "common sense" judgements on tax policy.

So here it is:
Bush Tax Cuts 2001 - 2011 (remembering that Obama agreed to extend them thru 2012)
Conservative estimates say these cost us about $800,000,000,000.00; or about $80 Billion/Year.

If each job created by the Bush Tax Cuts pays an average of $30k per year, then the Feds collect about $6,000.00 in taxes.

So, if we divide $80 Billion (cost) by $6,000 (revenue), we need to have created more than 13,000,000 jobs per year, which means we needed to have added over 1,000,000 jobs per month in the last 10 years.  When was the last time this economy showed a net increase of a million jobs in any month in the last 10 years?  When was the last time we showed an increase of a million jobs in any quarter?

But, let's back up a little and say that I'm using wacky numbers and that my calculations are just way off the mark.  OK; for grins and giggles, let's say I'm off by huge margins.  Let's say the cost is only half of what I'm citing, and that the jobs created are paying 50% better than $30,000 a year.

Now we've got a cost of $40 Billion per year divided by revenues of $9,000, which means we only needed 370,000 new jobs per month over the last 10 years.  Again, when was the last time we had a string of jobs reports that said we'd added 370,000 new jobs for any number of months in a row?

Reality: In the 118 months of W Bush and Obama, we've averaged a net increase of 17,144 jobs per month.  I don't care how you look at it, a decade of deep tax cuts has failed to produce what the proponents of this policy promised us.  We have to find it in ourselves to admit that it's a failure and that it belongs in the dumpster with The Great Society and The Domino Theory and a whole host of others that sounded good, but turned out to be little more than political flim-flam.

Fair warning: From here on out, if you try to float this shit by me, I will not preface my remarks by starting off with, "I'm sorry but..."  I will straight-up call you stupid to your face, and I really don't care what else happens.

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