When business gets a tax cut it uses that money to hire additional employees.
Not just adding a new employee, we need new everything and would buy them if I could stop having to reserve so much money for taxes.
If smart buys robot lays off three.
Hire and invest in the company.
Hello CEO bonus!
I believe you have cause and effect backwards in this case. Higher business taxes may prevent a company from hiring additional employees, but lower taxes only serve to remove that burden.
Lower taxes do not cause hiring anymore than lower bills at home cause more personal savings. But higher taxes may prevent hiring just as higher bills at home may prevent personal savings.
I can't believe I'm saying this, but I agree with your statement. Please excuse me, I need to take my temperature.
No. The only reason a business will hire more people is if there is increased demand for their product.
If you want businesses to hire more people you need to increase demand.
The way to increase demand is to increase disposable income.
You can cut taxes, but the higher the income of the people who get the tax cut, the less of the new disposable income they will spend.
Or, you can increase disposable income by raising wage rates. In this case, the lower the income of the people whose wages are raised, the more that will be spent.
Trickle down economics is one of the few economic theories that has actually been implemented in a realtime economy. It does not work. It did not work before. If we try it again why would we expect different results?
I would say a littlte of both for one it causes them to stay put where they are, no one loses their job. They don take that money and just hire new employees at least not direct cause and effect. They take it and invest it back in the business better production techniques, more production lines, etc. this then requires more people to man the expanded production therefore, it does but not directly.
Sometimes, always, never?
No. It goes to the stock holders.
I did a Google search of the question before I posted it. The first result was: How to Reduce Labor Costs in Your Business.
Conservative pundits love to say that when taxes are cut businesses will start hiring, but every business student knows that labor is often the number one cost of doing business and it is the last thing that should be considered when there is a surplus.
It's not that they think we're stupid, they know we're stupid.
One thing a businessman should know is more production generally equals more money so it would be idiotic to not put in that extra line to make more product and more money. Great example toyota has a factory in kentucky they get tax breaks that paid off for the local economy in jobs by the new lexus line they added which guess what added jobs.
Not really. It's more efficient to expand the "responsibilities" of your current workforce. We have seen it for decades. Workers are being asked to do more for the same salary. Over the last 15 years productivity has grown almost 20% while wages grew less than 4% all while corporate profits have grown over 300%.
The money is not going into hiring or raises.
Lets ignore the perfect example given. And there are lots of other reasons productivity increases better technology equipment and conditions all go into productivity