A billionaire named Nick Hanauer recently wrote an editorial for Bloomberg in which he destroyed the argument that the jobs in America are created by rich entrepreneurs and investors.
As both political parties try to blame each other for our economic mess, this argument has been repeated so often that it's now regarded as fact. And it is frequently and passionately invoked whenever someone is calling for further tax cuts for rich people--so rich people can have an incentive to create more jobs.
As I explained yesterday, this argument is absurd for many reasons, starting with the facts that taxes on rich people are already historically low relative to other (very prosperous) periods and that many billionaires and entrepreneurs like Hanauer have already gone on record to ridicule the idea that raising capital gains and income taxes a few points would suddenly make it not worth their while to start companies.
(The entrepreneurs would just take home slightly less money from their companies, but they'd start them anyway. So all cutting taxes for rich "job creators" would do would be to make the job creators richer.)
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