Even if you accept the idea that mre and more tax cuts is a good idea, which Republicans do and I do not, most of those 18 "tax cuts" were not actually tax cuts, but were tax credits, which are an entirely different thing.
They are a one-time deduction from taxes in return for actions by the employer which require spending money, such as investing in expansion, hiring new employees, etc. The tax credits return less money to the employer than the employer had to expend in order to obtain them, and they reduce the cost of performing actions which the government desires employers to perform. A great many of them go entirely unused.
An example was a tax credit for new hires, but no employer is going to hire new employees merely for a tax credit that is less than the cost of that new hire. He hires because he has work for the new employee to perform, and if he doesn't then he doesn't hire.
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"Cut taxes for small businesses 18 times."
ReplyDeleteEven if you accept the idea that mre and more tax cuts is a good idea, which Republicans do and I do not, most of those 18 "tax cuts" were not actually tax cuts, but were tax credits, which are an entirely different thing.
They are a one-time deduction from taxes in return for actions by the employer which require spending money, such as investing in expansion, hiring new employees, etc. The tax credits return less money to the employer than the employer had to expend in order to obtain them, and they reduce the cost of performing actions which the government desires employers to perform. A great many of them go entirely unused.
An example was a tax credit for new hires, but no employer is going to hire new employees merely for a tax credit that is less than the cost of that new hire. He hires because he has work for the new employee to perform, and if he doesn't then he doesn't hire.