Rick Santorum said at the first Republican presidential debate that he would “let the wealth really trickle down” as President. Alright! Someone who’s going to get at all that wealth sloshing around in big money pools up on gold-topped hills!! How’s he gonna do it?
By cutting taxes on corporations.
Oh. Never mind.
Instead of hoping that tax cuts for the wealthy and benefits cuts for everyone else will magically produce new jobs (Hello, declared Republican presidential candidates, a.k.a. the Seven Little Dwarfs), how about using the tax code to encourage hiring and job creation?
Tax incentives have helped produce a 26% increase in spending on equipment and software in the past two years. But as Catherine Rampell of The New York Times reports, spending on employees is up only 2%.
Part of the reason for this is fear of the cost of employee health insurance benefits, which could be addressed if we’d relieve businesses of a tremendous international competive burden and create a single-payer health care system….whoops, wrong channel.
If the tax code was tweaked to provide more incentives for hiring workers and fewer incentives for buying equipment–even equipment manufactured abroad, which does absolutely nothing for the U.S. employment picture–businesses would be more likely to invest in more workers. There’s no guarantee–but this would have more potential than any of the quarter-baked pseudo-ideas that were uttered on the New Hampshire stage in June.
The Tax Code: It Can Be A Force For Good!