Liberals insist that raising taxes creates jobs. Where is the proof that raising taxes creates jobs?

Raising taxes doesn't really help with job creation. It does wonders for budget deficits, though. Right now, America needs jobs and balanced budgets.

The problem, though, is that steps that help with one of those hurt the other. Republicans are playing into this phenomenon in order to justify their partisan agenda. They attack unions and social welfare programs, claiming we can't afford the spending that benefits them.

Then they turn around and justify spending for the oil industry and tax cuts for the rich by citing job creation, ignoring the growth in budget deficits those measures create. So, liberals don't advocate for raising taxes as a form of creating jobs. Liberals advocate raising taxes in order to meet conservative demands for balanced budgets.

After all, due to how little of their income rich people actually spend, raising their taxes has the least negative impact on consumer spending and economic growth.

I don't think there's a claim that raising taxes will directly create jobs. At least, not at this point. There are some MINOR ways it can, of course.

For example, a larger federal budget means that more money to flow to contractors. In the DC area, there are thousands of companies that rely on federal dollars (which come from taxes). If that money went away, you'd see millions of people out of jobs.

(Note: I'm not trying to make an argument that taxes should be raised in order to create jobs for Beltway Bandits. Just showing that lowering taxes can kill jobs/raising taxes can create jobs). As well, money that's put into science and invention (as Obama mentioned last night) can create new technologies that create new jobs.

Not saying that the private sector can't also do this. But, since you asked, I'm simply pointing out that federal research dollars can lead to positive things for industry. Take, for example, all those inventions of NASA and DoD over the years.

Many have created tons of jobs as these technologies have come into the "civilian" space. You're question "I want to know how a business owner would be inspired to take a risk on hiring more employees knowing his taxes are increasing" isn't the right way to look at things. The decision to hire should be based on your expected demand for whatever product or service you offer.

You'd have to be a really poor business person to not hire the staff you needed to meet the demand and to grow, simply because of the "boogeyman" of taxes. Taxes, yes, mean that you'll end up with less money when all is said and done. And that's valid.

But it has very little to do with hiring to meet demand. "an increase in our taxes is a deterrent, not an incentive." If you see taxes as a deterrent to being successful, then you're not a very good businessperson.

Being successful is having an excellent product/service that people want and being able to get consumers to buy it. If you are "deterred" from being successful because of (I'll say it again) the tax boogeyman, then you'd best close shop and go work for someone that has the guts and knowledge to run a successful business.

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