FOR IMMEDIATE RELEASE
CONTACT: United for a Fair Economy
No Correlation Between Bush Tax Cuts and Job Creation Rate
Job Growth at Historic Low After 4 Years of Tax Cuts; Quality of Jobs Poor
BOSTON - November 15 - As outrage in Congress stalls the Bush administration's attempts this Thanksgiving season to extend tax cuts that will primarily benefit the wealthy, a new study, "Nothing to Be Thankful For: Tax Cuts and the Deteriorating U.S. Job Market" (available on the web at (http://www.faireconomy.org/press/2005/ThanksgivingReport_pr.html), examines the administration's claim that tax cuts create jobs--and finds it without merit.
Evidence shows that, historically, changes in tax rates have no discernible effect on employment. Moreover, during the Bush administration, job creation since 2003 has fallen millions of jobs short of the administration's promises, and is significantly below what would normally be expected even without extraordinary economic stimulus.
"Contrary to what President Bush and his tax policymakers are saying, tax cuts do not automatically create jobs. Tax cuts are just one of many things that can affect job growth," said Liz Stanton, director of research at United for a Fair Economy (UFE) and a co-author of the report.
"President Bush's Jobs and Growth Tax Relief Reconciliation Act of 2003, far from delivering on the promises made to create 5.5 million new jobs, has carved out a new low in job recovery after a recession." said Scott Klinger, another co-author and director of UFE's tax policy group. "The president's tax-cutting policy is a failure in this regard, and we need to recognize it as such."
The report reviewed administration claims that "tax cuts create jobs" and found the following:
"No workers have really benefited from President Bush's tax policies, but blacks and Latinos have suffered disproportionately," said Gloribell Mota, bilingual education specialist at UFE.
"As the nation prepares for our annual feast of bounty and thanksgiving, many U.S. families will not be participating. This is because the multiple breadwinners each family needs these days don't all have jobs," said Anisha Desai, UFE's program director and a report co-author. "Of those that do, many are not making enough money to pay for turkey and trimmings for everybody in the family."
"Nothing to Be Thankful For: Tax Cuts and the Deteriorating U.S. Job Market" was co-authored by Anisha Desai, Scott Klinger, Gloribell Mota, and Liz Stanton. The authors are available for interviews by calling 617-423-2148 ext. 119, or emailing firstname.lastname@example.org.
The report is available at http://www.faireconomy.org/press/2005/ThanksgivingReport_pr.html.
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United for a Fair Economy (www.faireconomy.org) is a national non-profit that spotlights the growing economic divide in the U.S.