Taxes Do NOT Create Jobs

PatriotPost.USBy Mark Alexander · Thursday, July 29, 2010 Recovery Rhetoric v. Reality "Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands." --Thomas Jefferson Fact: Despite all of the claims by Barack Hussein Obama and his cadre of Socialists about "creating or saving" jobs through their so-called "stimulus plan," their taxing revenue out of the private sector (from this and future generations) does NOT "stimulate" private sector job growth -- quite the contrary. (Nor is there any expressed authority in our Constitution1 for such redistribution of wealth -- but who pays attention to that venerable old parchment?)

Late last Friday, after the White House press corpse had departed for weekend resorts, Obama released his administration's "Mid-Session Budget Review," which analyzed the results of his effort to "fundamentally transform2 the United States of America" with his "stimulus" plan. From almost any vantage point, the report is tantamount to an admission of failure, but Obama's rhetorical smokescreen continues to imply otherwise.

That plan, officially known as the American Recovery and Reinvestment Act3 but more accurately known as the American Socialization and Redistribution Act, is Obama's ruse to confiscate from taxpayers -- and borrow primarily from the Red Chinese -- almost a trillion dollars, then redistribute it to his constituents through government-controlled conduits.

The deficit created by Obama's plan this year alone is projected to be $1.471 trillion. That's the largest deficit in our nation's history and the largest as a percentage of U.S. economic output since World War II. According to Heritage Foundation analyst Brian Riedl, "Before the recession, federal spending totaled $24,000 per U.S. household. President Obama would hike it to $36,000 per household by 2020 -- an inflation-adjusted $12,000-per-household expansion of government."

Notably, if federal spending were reduced to the per-household rates under Ronald Reagan4, we'd have a balanced budget by 2012 without any tax hikes. Of course, that would require cutting government spending, and such a notion is antithetical to the Socialists in control of the U.S. government.

Of such debt, Thomas Jefferson observed, "We must not let our rulers load us with perpetual debt. ... I place economy among the first and most important of republican virtues, and public debt as the greatest of the dangers to be feared. ... The fore horse of this frightful team is public debt. Taxation follow that, and in its turn wretchedness and oppression."

There is much to be feared because Obama's plan, if unaltered, will break the back 5of free enterprise and the consequence will, most assuredly, be "wretchedness and oppression."

Obama claims that his stimulus package "creates or saves jobs." Setting aside the utter ridiculousness of this made-up metric and the mainstream media's willingness to let him trot it out, Obama's "stimulus" does nothing more than take income from the private sector and use it to grow government. It is not about job creation but about job displacement. It's about embezzling funds from the private sector to underwrite jobs that a small cadre of central government planners determines are necessary to further centralize their power and control over the economy.

Memo to Obama, et al.: Private sector job creation occurs when private enterprises have sufficient capital to improve and expand their operations in order to meet growing demand in a competitive, healthy economy. The job creation that occurs when the private sector is able to compete in a free market unfettered by excessive government interference (taxation and regulation) is the most stable and secure type of job growth.

Of course, taxes are necessary to fund some government jobs -- most notably those actually authorized by our Constitution, such as in national defense.

However, the current debate is not even centered on tax reductions, but merely holding the line on taxes now. When the current Bush-era tax rate limits expire on 1 January 2011, Obama will, without a single vote in Congress, usher in the largest tax increases in the history of our Republic, even if Congress extends breaks for the lower brackets. This business of sunsetting tax limits is a charade -- cut taxes and then Congress must vote to increase taxes. As it is, the Socialists look heroic for extending tax breaks on all but the "rich."

Here is the breakdown: More: