Double-Dip Recession a 'Virtual Certainty'

[HAL 9000 96]

Why? I think it would have enabled business to expand and hire.

Tax breaks on large business lines pockets, not payroll.

If you mean tax breaks on small businesses, then you have a point worth agreeing on, IMO.

[JohnSmith2007 353]

Tax breaks on large business lines pockets, not payroll.

If you mean tax breaks on small businesses, then you have a point worth agreeing on, IMO.

Small business as well but all business should have gotten a tax holiday. To insure that hiring and expanding business is the main goal of the tax break make some sort of a long term tax break for each percentage of new hires in relation to what their workforce was before the tax break.

[Dan J 277]

Rather than all this stimulus plans that have done nothing but put us further into debt and haven't get the economy going I would have rather seen a 2 year corperate tax holiday. That would have gotten people back to work.

Corporate tax breaks don't create jobs. It might lower a risk assessment of hiring for a few companies. But by and large that money is going to sit in corporate accounts until the economy gets better or its going to be paid to shareholders and owners as dividends/bonuses.

[JohnSmith2007 353]

Corporate tax breaks don't create jobs. It might lower a risk assessment of hiring for a few companies. But by and large that money is going to sit in corporate accounts until the economy gets better or its going to be paid to shareholders and owners as dividends/bonuses.

I disagree. That is the only way to create jobs. The government can't create anything but government jobs.

Edited August 16, 2010 by JohnSmith2007

[HAL 9000 96]

Small business as well but all business should have gotten a tax holiday. To insure that hiring and expanding business is the main goal of the tax break make some sort of a long term tax break for each percentage of new hires in relation to what their workforce was before the tax break.

I'll let Dan answer this as I agree with him on post #33.

I disagree. That is the only way to create jobs. The government can't create anything but government jobs.

When you reduce it to such an absolute, you lose any credibility.

[Mr. Big Dog 10,747]

Why? I think it would have enabled business to expand and hire.

Businesses hire if demand goes up. Cutting corp taxes doesn't create demand - at least not the demand that matters in this country. Consumer demand is what drives the US economy. Cutting corporate taxes won't do shite for consumer demand and hence shite for hiring.

[JohnSmith2007 353]

When you reduce it to such an absolute, you lose any credibility.

So name a non government job that the government can create then.

[HAL 9000 96]

So name a non government job that the government can create then.

You're hinting at something possible in post #32.

[JohnSmith2007 353]

Businesses hire if demand goes up. Cutting corp taxes doesn't create demand - at least not the demand that matters in this country. Consumer demand is what drives the US economy. Cutting corporate taxes won't do shite for consumer demand and hence shite for hiring.

Neither does pork barrel stimulus that only benifits the politicians like we just had. Otherwise we would have a booming economy. It seems the only solution to some people is more and more debt and government spending. It clearly does not work.

[HAL 9000 96]

There's those absolutes again...

[Mr. Big Dog 10,747]

So name a non government job that the government can create then.

Any job the government "creates" is necessarily a government job. Any demand for good and services the government creates in the economy, however, creates private sector jobs. Take the tax credit for energy efficient appliances, for example. Due to this credit, I opted to have a new A/C unit installed in my house where I would otherwise most likely have opted to have my existing unit repaired. The new unit was manufactured in TN (jobs there) and installed by 2 technicians (jobs here). I remember the story about a window manufacturer in PA who had to hire to meet the increased demand for energy efficient windows that the tax incentives from the stimulus package created. These jobs would otherwise not have been there. Did the government "create" these jobs? No, a private business did. But it did so only because the government provided certain incentives that drove up demand for the product they are making.

[Mr. Big Dog 10,747]

Neither does pork barrel stimulus that only benifits the politicians like we just had. Otherwise we would have a booming economy. It seems the only solution to some people is more and more debt and government spending. It clearly does not work.

Get over yourself. It matters rather little what the money is spent on, it matters that it is spent and that it creates economic activity. Tax breaks are the least effective stimulus you can provide. They get less effective the higher up the income scale they're geared towards. That said, pumping 780 billion over the course of 2 years into a 14 trillion a year economy (that's 2%) isn't going to have the shop explode. What it did accomplish is to stop the downward trajectory that the economy was on.

[JohnSmith2007 353]

Get over yourself. It matters rather little what the money is spent on, it matters that it is spent and that it creates economic activity. Tax breaks are the least effective stimulus you can provide. They get less effective the higher up the income scale they're geared towards. That said, pumping 780 billion over the course of 2 years into a 14 trillion a year economy (that's 2%) isn't going to have the shop explode. What it did accomplish is to stop the downward trajectory that the economy was on.

You get over yourself. If stimulus worked we should be booming. The fact we are not proves that it does not work. Tax breaks is the best way to stimulate the economy. Let the people and business keep the money that is theirs and the government should just butt out. They are the cause of the recession and the reason we still have one.

[HAL 9000 96]

That there is called context.

(Big Dog)

[JohnSmith2007 353]

That there is called context.

(Big Dog)

It is called big government BS. What would you suggest? 10 trillion dollars of borrowed stimulus?

Edited August 16, 2010 by JohnSmith2007