|Source||News for Social Justice Action|
|No Correlation Between Bush Tax Cuts And Job Creation, Report Shows
Press Release from United for a Fair Economy
"By cutting taxes on income, we helped create jobs,"
President Bush said in an address Friday to business
executives at the Economic Club in Chicago.
BOSTON-As President Bush and his senior advisors
traveled across the country this past weekend touting
2005 job growth numbers and demanding that Congress
make the administration's tax cuts permanent, a study
examines the administration's claim that tax cuts
create jobs-and finds it without merit.
While two million jobs were created in 2005, this is
3.5 million jobs short of expectations by the
President's Council of Economic Advisors, who estimate
job growth at 3.1% in a normal year. Jobs grew by only
1.5% in 2005.
"The president's tax-cutting policy is a failure in
regard to job creation, and we need to recognize it as
such, " said Anisha Desai, program director at UFE and
one of the report's co-authors. "While there is no
evidence that massive tax cuts create jobs, there is
considerable evidence that they contribute to economy-
The report reviewed administration claims that "tax
cuts create jobs" and found the following:
* Tax cuts have no predictable effect on employment,
either in job creation or job destruction. * Since
2003, job creation has fallen millions of jobs short of
the administration's promises. * The current weakness
in job creation during an economic recovery is
unprecedented since World War II.
The report highlighted other concerns about jobs and
the economy as well. For example, the number of good
quality jobs (defined as those paying at least $16 an
hour, providing employer-paid health insurance, and
providing a pension) has remained flat at 25% of all
workers. Significant racial disparities exist: black
employment is at 89.6%, compared to 95.2% for whites.
And Latino workers average more than $10,000 per year
less in earnings than whites, and this gap is
The report, entitled "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 email@example.com. The report is
Call for hard copies.
United for a Fair Economy ( www.faireconomy.org) is a
national non-profit that spotlights the growing
economic divide in the U.S.