“Cutting taxes on the wealthy creates jobs.”

This lie could only have been generated by wealthy contributors to political campaigns. But let’s examine it anyway.

Both political parties acknowledge that the vast majority of jobs are created by small businesses and, most especially, by new businesses. Yet, for investors, these businesses often entail a great deal of risk – something the wealthy are generally adverse to. So the wealthiest Americans tend to invest their money, instead, in large corporations which offer greater security.

Moreover, most of the incomes for the wealthy are the result of capital gains (generated by selling stocks for more money than they paid for them). This income is now taxed at the unbelievably low rate of 15 percent. That’s lower than the income tax rate for most of the middle class! It begs the questions, “How much farther can we cut taxes for the wealthy?” and, “How will that create jobs?”