Tax Increases Create Jobs And Stimulate "The Economy"

You don't believe it? Then you must be one of those neanderthal Republicans or conservatives or libertarians or classical liberals, etc. etc. etc.

Read a liberal/progressive blog these days and your bound to be bombarded by headlines such as these: AGAIN - The Bush Tax Cuts Did Not Create Jobs! and At Town Hall, GOP Rep. Hultgren Can't Explain How Bush Tax Cuts Created Jobs.

Blog posts such as these are extremely popular now because the left is trying to gin up support for tax increases on the "rich." These posts regularly mention the "fact" that while the Bush Tax Cuts didn't create jobs the Clinton tax increases of 1993 created 22 million jobs in eight years and balanced the federal budget.

[By the way, the chart included in the links above does not show monthly jobs created or lost during the period shown. It illustrates the difference between jobs actually created and jobs predicted to be created by the Bush administration due to the Bush Tax Cuts. In truth, 2.4 million jobs were created during the period shown in the chart. The questions progressives refuse to answer are: Who created these jobs and why? How many of these 2.4 million jobs were created due to the Bush Tax Cuts? How many would have been created without the Bush Tax Cuts? What is the theoretical economic argument which explains the contention that tax increases create jobs?]

If you want the full and truthful scoop on all this, read or re-read: The Clinton Tax Myth by Yossi Gestetner.

If you want the full and reasonable economic theory, read Ludwig von Mises.