Tax-breaks as inducement to "create jobs"

[0rganism]

Personally, I think this give-away to the corporations has gone way too far at the federal, state, and local levels. If they were going to create thousands of jobs in Oregon with the money they reap from capital gains tax cuts and $10 CMTs, we would have seen it happen by now.

I think we should directly link any and all state corporate tax breaks to the number of jobs actually created. For example, let the corporados claim a tax shelter on their profits equal to the change in payroll tax from Oregonians over the previous year. If they need an incentive from the local gov't to create jobs, we should make damn sure those jobs are created locally, rather than Thailand or Bangalore. The corporados can offshore on their own dime.

[bushisanidiot]

1. AWOL Bush was installed to make the rich richer and poor poorer

he keeps lying to his base claiming that all the money he is saving large corporations will mean more jobs and higher pay for american workers....pfft! as if large corporations' PROFIT$ are going back to the workers!! look at all the money China-Mart gives back to their employees because they've saved so much in union-busting activities. BWAHAHAHAHAHA!! Nothing.. freepers listen.. NOTHING GOES BACK TO THE WORKERS.. NO EXTRA JOBS.. NO EXTRA BENEFTIS.. NO EXTRA PAY.. NOTHING! It all goes in the pockets of AWOL Bush's greedy buddies who own Corporate Amerikkka.

[HereSince1628]

2. Everyone forgot that our standard of living was a leaky balloon

kept inflated by a loose coalition of producers and consumers who had local/regional/and national interests in periodically blowing some hot air to keep the whole thing looking fly-able.

Corporations want profits, not obligations to local, regional, or national authorities. Corporations have no local, regional or national loyalties.

When they say they are making a business decision, get out the K-Y Jelly because somebody is about to be reamed.

[RobertSeattle]

3. A canard

All things being equal, when a business owner gets say $10K extra money in profit, they'll pocket the money over anything else (Wouldn't you?!). You only hire people when you NEED to hire people.

[0rganism]

8. But a potentially useful one for labor, as well

I think we should give the corporados incentives to hire locally. In order to do that, we could link tax breaks to actual workforce growth.

[HockeyMom]

4. Creating jobs in INDIA

Just read that now hospitals are outsourcing lab work to India.

At this rate what will be left? Even the McD's and Home Depos are elminating low level jobs with scan, bag, and pay yourself.

Buddy, can you spare a dime? Is that where we are heading?

[0rganism]

9. Oh that is *exactly* where we're heading

Unlike some I know, I have no objections to bringing in qualified workers from overseas. At the very least, these "guest workers" or whatever we call them now are supporting the local infrastructure and business communities to the extent that they pay taxes and spend money on food and housing. Furthermore, I can be sure that their working conditions are on par with American safety standards, and union organizers are not summarily executed on site by rightwing deathsquads. The economy *is* globalizing, whether we like it or not, and I'd prefer a situation where guest workers return to their home countries with aspirations to improve conditions there, where appropriate.

What really yanks my chain is exploitation of unsafe working conditions, emissions deregulation, and a dirt-poor labor force with no minimum wage laws for "competitive advantage". Imported goods and services should be tariffed for any wage differential between production and Federal minimum wage. If a company pays $.50 wage per item in a Guatemalan sweatshop instead of $10 in an American factory, then that other $9.50/item is better spent on retraining the American workforce than on luxury items for the shareholders.

[Robert Oak]

5. another assumption demystified

Here are some links to some papers correlating tax cuts, corporate
tax incentives and increase in the number of jobs.

Conclusion, either negative or negligible. Great topic, I just
assumed that tax cuts worked.

http://www.cab.latech.edu/public/DEPTS/economic_rd/economic_development/projects/Review_of_the_Impact_of_Econ_Dev_Incentives.pdf

http://www.reclaimdemocracy.org/articles_2004/tax_rates_unemployment_correlation.html

http://www.asu.edu/copp/morrison/tax/tax9.html

www.ncjustice.org/media/library/126_pb120103.pdf

http://taylorandfrancis.metapress.com/app/home/contribution.asp?wasp=36f686c4f2b640bb80b4c69303bd4cd1&referrer=parent&backto=issue,3,4;journal,4,10;linkingpublicationresults,1:300212,1

[AllegroRondo]

6. Tax cuts dont create jobs

no company ever hired someone because they had extra money laying around. They hire to meet demand - if there is demand for their product or service you can bet they will hire enough people to meet it. tax cuts for companies dont do anything to increase demand, they only decrease taxes and increase profits.

[0rganism]

10. That, however shakey, is the justification

And it can be hard to argue against when a corporation threatens to shut down its manufacturing branch in Albuquerque and relocate to Kuala Lumpur because of taxes, minimum wage laws, or costly environmental regulations. The outcome in the long run is that the American workforce will attain wage and working-condition parity with the rest of the world's workers, one way or another. Only at that point can we reasonably expect an end to outsourcing.

[Village Idiot]

7. Corporate tax breaks create jobs - it's a FACT.

It is unfortunate, however, that they only seem to create them in places like Bangalore, Guongdong, and Singapore...