How effective are the Bush tax cuts at creating jobs?

[Kasz216]

whatever said:

Kasz216 said:

Besides, aren't you talking about the  second set of bush taxcuts?

The ones that were inacted in 2003.  When unemployment was at 6.00%?

Becuase, after a slight raise more, unemployment plummeted until the financial crisis.

So...

they did work.

Unemployment only going back up when minimium wage increased.  Which is a natural effect of raising minimium wage followed by the economic crisis.

Except there is no way to prove if the tax cuts had anything to do with unemployment decreasing until the crisis.  It could have been due to many other factors.

Historically if you map out "tax cuts vs tax increases"  in general lower unemployment follows tax cuts, while higher unemployment follows tax raises.

You can't say for sure whether or not it makes a difference... but there is a whole lot more evidence supporting it does help rather then it not helping.

Note also, it's tax cut's and tax raises, not tax levels.

After about a decade people "adjust" to the new tax rate, no matter what it is.

The Bush tax cuts likely did increase jobs and now people are used to the tax rate, so while it's not creating further jobs, removing them will in fact kill off jobs.

It's why spending cuts are the best way to deal with a deficit in bad times and higher taxes are a better soulation during good times... though even then based on the short term loss of growth... it's a tradeoff to be sure.