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Dear Editor: Anyone who claims that tax cuts create jobs is trying to fool you or themselves. Here is the basic equation: increase in sales cause increase in production which eventually leads to hiring employees. Sales of products cause job creation. No business that uses good, honest judgment will create a job that doesn’t lead directly to increase in profits. Yes, decreasing taxes on businesses will decrease business expenses and increase profit margins but not product sales. However any decrease in a business’ overhead will have no effect on sales unless the products quality or features increase or price decreases. Even so, the market, not the cost of business, determines a products price. I have never heard any business person say I’ve just got a tax cut so I think Ill hire some employees. I have heard my sales are growing so we will be hiring to increase our production, just not recently. Julius Hayden Covington
Feb. 26, 2009 05:43p.m. EST
Taxes and jobs
Staff Report
CovNews
Dear Editor: Anyone who claims that tax cuts create jobs is trying to fool you or themselves. Here is the basic equation: increase in sales cause increase in production which eventually leads to hiring employees. Sales of products cause job creation. No business that uses good, honest judgment will create a job that doesn’t lead directly to increase in profits. Yes, decreasing taxes on businesses will decrease business expenses and increase profit margins but not product sales. However any decrease in a business’ overhead will have no effect on sales unless the products quality or features increase or price decreases. Even so, the market, not the cost of business, determines a products price. I have never heard any business person say I’ve just got a tax cut so I think Ill hire some employees. I have heard my sales are growing so we will be hiring to increase our production, just not recently. Julius Hayden Covington
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