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December 1, 2011

A contrarian view on tax cuts

by @ 2:29 pm. Filed under Personal Opinions

What little experience I have regarding owning a business, I have learned that tax cuts for businesses do not make jobs. I’ll take my business as an example. We may be hiring in the next six months or so, because as the business grows, I become less capable of performing the ever growing list of tasks that must be completed. So, tax cuts don’t really factor into the equation. I also speculate that in the case of large businesses with stagnant growth, tax cuts are simply a way to claim more money on one’s balance sheet while not actually growing. Some particularly short-cited manager or corporate officer may even recommend lay-offs to increase profit or to bump up share price for the quarter. Innovation and hard-work are thrown out the window. This is a form of corporate welfare that I personally don’t understand. Where are the job creators? Why aren’t banks lending money after TARP? Simply stated because they don’t have to. If they pay less taxes, the less effort these clowns will exert to meet their goals or in the case of banks; they de-leverage with every QE the Fed implements coupled with virtually 0% interest for the next few years. They profit by default not by traditional banking functions. The only thing I see is a bunch of corporate officers who pay themselves an undeserved and exorbitant pay-check to run their businesses into the ground and transfer of risk to the public.  Am I missing something?

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Optician n. One who is extensively trained in the interpreting of ophthalmic prescriptions and applies that knowledge to obtain the optimum visual and safety performance for the patient in a pair of spectacles or contact lenses.

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