Fact Check: We have 50 years of data that tells us what corporations do with tax cuts. This has been one of the most studied things by universities around the world for the last 50 years. And in the last 50 years across 18 of the wealthiest nations in the world not one has corporate tax cuts equated to higher job growth. 00:35 Not once. Or we can just look at the Trump tax cuts passed in twenty 17. Donald Trump created 40, 000 less jobs a month than Barack Obama did. And oh by the way that's leaving out COVID. That's leaving out all the job losses from the pandemic. There is one thing that happens when you give corporations big tax breaks. This right here. 50 years of data. You see that red line on top? That's the rich getting richer. You see those two lines on the bottom? That's the bottom 905percent? No In 01:06 twenty 18 corporations spent over a trillion dollars on stock buybacks and created less jobs than they did in twenty fourteen, 15, 16, and seventeen. You see the rich can afford to pump all of this misinformation into your brain. And that's why you believe it. There's not a single case in history of tax cuts for the rich helping an economy in any way shape or form.

Fact-Check: "We have 50 years of data that tells us what corporations do with tax cuts..."

What We Know

The claim that "not one [corporate tax cut] has equated to higher job growth" across 18 of the wealthiest nations is a broad assertion that lacks specific citations to empirical studies. However, there is a substantial body of research examining the effects of corporate tax cuts on job growth. For instance, a report by the Congressional Research Service outlines the economic effects of the Tax Cuts and Jobs Act (TCJA) of 2017, which aimed to stimulate business investment and job creation through significant tax reductions. The report indicates that while there was some increase in business investment, the overall impact on job growth was less clear and varied by industry.

Moreover, a study published in ScienceDirect discusses the implications of the TCJA and highlights that while corporate tax cuts can lead to increased capital investment, the direct correlation to job creation is not straightforward. The study emphasizes that the benefits of tax cuts may not be evenly distributed and often favor shareholders over wage growth for employees.

The claim also references the job creation statistics during the Trump administration compared to the Obama administration. According to various analyses, including one from Seeking Alpha, job growth did slow during Trump's presidency relative to the previous administration, although attributing this solely to tax policy is complex and influenced by multiple factors, including economic conditions and the COVID-19 pandemic.

Analysis

The assertion that corporate tax cuts do not lead to job growth is partially supported by the literature, but it is overly simplistic. While some studies indicate that corporate tax cuts do not directly translate into job creation, others suggest that these cuts can stimulate investment, which may indirectly lead to job growth. For example, the Economic Impact of Extending TCJA Provisions notes that tax cuts were intended to boost domestic investment, which could potentially lead to job creation over time.

However, the reliability of the sources varies. Reports from governmental bodies like the Congressional Research Service are generally credible, as they are based on comprehensive data analysis. In contrast, articles from opinion-based platforms or those with vested interests may present biased interpretations of the data. For instance, the Economic Policy Institute argues that tax cuts disproportionately benefit the wealthy and do not effectively stimulate the economy, which aligns with the claim's sentiment but may lack the nuance of broader economic analysis.

The claim about stock buybacks is also notable. According to Harvard Law School, while stock buybacks surged post-TCJA, the relationship between these buybacks and job creation remains contentious. Critics argue that companies often prioritize shareholder returns over reinvestment in workforce expansion.

Conclusion

The claim that "not one" corporate tax cut has led to job growth is Partially True. While there is evidence suggesting that corporate tax cuts do not consistently result in job creation, the relationship is complex and influenced by various factors, including economic conditions and corporate behavior. The assertion overlooks the nuances of economic policy and the mixed results observed in different studies. Therefore, while the sentiment aligns with some findings, it does not fully encapsulate the broader economic landscape.

Sources

1. Lessons from the Biggest Business Tax Cut in US History
2. Economic Effects of the Tax Cuts and Jobs Act - Congress.gov
3. The Economic Impact Of Extending Expiring Provisions Of The ...
4. There will be pain: Continuing low tax rates for the rich and ...
5. Distributional Impact of the Tax Cuts and Jobs Act over the ...
6. Who gains from corporate tax cuts? - ScienceDirect
7. Tax Cuts - An Examination Of The 2017 TCJA Impact - Seeking Alpha