First of all, in Palin Rails Against ‘Crony Capitalism’ and ‘Career Politicians’ I can’t believe I actually agree with her on something:
She suggested that the “permanent political class” — Republicans, too — needed to be rattled.
More and more it seems like businesses and the rich own politicians, and it would be great to break this trend. But with both sides enjoying a mutual gravy train* I don’t see how either side would let it stop. Anyway, on to my point: I don’t think Palin’s suggestion will work, and instead will just continue to keep politicians in the pockets of big business.
She outlined economic proposals for creating jobs, including the elimination of all federal corporate income taxes.
Politicians (and quite often Republicans) love to say they will create jobs by cutting taxes. It’s true that Americans want and need jobs, but politicians just aren’t the people to do it. If you haven’t already heard This American Life’s excellent episode How To Create a Job, give it a listen (especially act one: “Can the Government Move My Cheese?”). Tax cuts for hiring new employees doesn’t offer businesses enough incentive to hire someone — saving a few hundred or even thousand dollars on a new hire doesn’t offset the cost of that person’s salary, benefits and insurance. What gets businesses to hire is basically just demand (does the company need more people to keep doing what they do).
Palin’s (and others’) plan to cut/eliminate corporate taxes in the name of “creating jobs” sounds more like politicians to supporting big business without any actual benefit to the people who need the jobs most.
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*another, less family-friendly expression can also be used here