Tax cuts and job creation

"You can't raise taxes on the job creators" has been an often repeated phrase.

Let's analyze this concept. It has been proposed that the original temporary tax cuts on high earners be allowed to expire. Forcing the temporary rates to become permanent is like requiring Schnucks to make its weekly specials permanent. Illogical.

Next, can the rich afford a tax increase? The proposal is that marginal rates on those with taxable incomes over $250,000 would pay about an extra 4 percent. Say someone's income is $350,000, has a modest $50,000 in exemptions and deductions, leaving a taxable income of $300,000. Their added tax would be 4 percent on the $50,000 above $250,000; $2,000. Can someone earning $350,000 afford to pay an extra $2,000?

Next is the "job creation" argument. Having extra money in your pocket does not cause you to hire people -- it is demand for your product or services that creates employment. Merely putting more money in the pockets of "rich people" does not create jobs.

Steve Jobs was one of the richest men in the country. Yet, aside from perhaps household help, he didn't really create jobs. The company he started, Apple, created lots of jobs. But that has nothing to do with his individual income or tax rate. Substantially, high-income individuals do not create jobs.

So let's view this "job creators" argument for what it really is -- a way for rich donors to perpetuate paying low taxes. It really has nothing to do with creating jobs.

PETER GORDON, Cape Girardeau