From the blog Angry Bear by Dan Becker who writes a post going over the numbers about that $4 trillion in deficits that will accrue if the Bush tax cuts are allowed to run for the next 10 years.
“This is a simple little exercise that frankly I wonder why no one with a pulpit (that would be you congress critters, executive office and MSM) has done it. It is for those who think simplistically. Thinking like: wealthy people create jobs with their extra money and not the non-wealthy people’s demand for stuff that makes them feel wealthy.
Let’s say that tax cuts create jobs. 770,000 jobs for what is it, $4 trillion over 10 years? The obvious question is: How many jobs do we really need for that money to break even? Come on conservatives, you’re suppose to be the “efficient minded” thinkers. How many jobs would it take to pay it back?
Median household income for 2009 is $49,777. 5% less than the peak of 1999 by the way. Full time working men it was $47,127, women $36,278. Per capita income was $26,530. These numbers are from here.
Using the household income number just because, in 10 years, you would need 80,358,389 jobs created to equal the tax cut.. Eighty plus million jobs. Of course, that we created these jobs does not mean all that money is paying for the $4trillion in lost tax collections. Only a percentage of the income is collected by We the People as income tax. Based on the Tax Foundations data that figures out to an average of 12.68% of taxable income paid as income taxes. Thus, $6,311.72 is paid for income tax for the median household income.
Stay with me here, this is simple. $4 trillion divided by $6311.72 is: 633,741,674 jobs in ten years. About double our total population in 10 years needs to be working.
Our policies have to start producing 63,374,674 jobs as soon as the tax cuts are passed, at the beginning of each year (’cause we need to collect the full $6311.72 at the end of each year) to pay for the tax cut. That is over the year, we need the equivalent of 63,374,674 jobs each having generated $49,777 of taxable income to make the mark for paying off the tax cut for that year. Not every job will pay that much for the year, so we actually need more than 63,374,674 jobs. That is, unless magically at one tick past midnight New Years Eve suddenly we have those jobs paying at that rate.
Sixty three million jobs per year. Really? Come on, you think this is possible? This nation is gonna need a lot more copulation and immigration happening over the next ten years for that to happen.
Let’s say it is possible, just not here. China?
Not even in China can do it, as they only managed 22 million jobs in 2 years . Though they did manage to provide 112 million more willing workers over the last 10 years. Problem is, even at 22 million jobs, those sure are not at a median income of $49,777/year.
So. Really… tax cuts? LOL. Pay for them with job creation? Oh please, you’re killing me!”