Remember those hefty tax giveaways to private corporations, our good friends the “job creators?” Yeah, that didn’t work out so well.
Tax credits, while costly for state taxpayers, aren’t returning on the investment. I guess President Obama’s investments in the private sector aren’t the only investments that merit a very public investigation.
Forty percent of Wisconsin businesses that recently completed tax-credit programs tied to job creation failed to hire as many people as they expected, according to a newspaper analysis that raises questions about how effectively tax credits translate into jobs.
… [O]f the 191 other businesses still active in the program, just 8% created the required number of jobs to earn the credits, according to a report Friday in the Wausau Daily Herald.
Economic-development experts and business leaders – including some who received the incentives – say state tax credits are only a small factor in spurring new jobs. They say the biggest factor in hiring is increased demand for a company’s product or service.
The next GOPer who uses the phrase “job killing regulations” get’s a coconut cream pie to the face. That’s what you do to clowns.
Tax cuts for business don’t work when you’re facing a zero-bound interest rate environment (aka the liquidity trap). Access to capital is not the problem. Aggregate demand is the problem. We have a classic Keynesian demand side problem both in Wisconsin and in the nation. The business leader say it, the economists say it. What more do you need?
But this obsessive fixation on tax cuts across the board as the solution to all ills reminds me of the medieval medical practice of bleeding. It’s prescribed for all ailments and it generally makes the patient sicker. Well done, Tea Party GOP! Well done!