City of Kotzebue News

City of Kotzebue News
Next city council meeting

Friday, November 3, 2017

Tax cuts do not create jobs

I, and I'm sure many of you, pay a lot in federal taxes. It's about a quarter of our pay check. We've even made a joke of it at work. Whenever someone would say another day another dollar I'd replay with 75 cents after taxes.

But taxes are not bad. I like it when our tax money goes to pay for infrastructure like roads. I like helping people who need a hand out. I think they're doing to much but we need to pay for The Military too. Not wanting to have taxes is childish. You can't have the candy bar unless you pay for it.

The problem is the corporate elite are able to pay off politicians to get the candy bar without paying for it. Some of these billion dollar corporations are actually able to get tax money instead of paying out. Sometimes this comes with the promise of creating jobs.

Football season has started so lets use The NFL as an example. In 1995 The NFL has the city of St. Louis build it a new stadium for The Rams. The idea was to keep The Rams in the city so that St. Louis can continue to make money off of having The Rams there.


Of course The Rams and The NFL decide that they need to move to LA instead despite the fact that St. Louis poured billions of dollars into the stadium. And this should tell you companies and giant corporations are not your friend. St. Louis gave the money but The Rams moved elsewhere anyway.

A few years ago we gave a tax break to oil companies. I bet many of us were expecting economic growth for the state and maybe a job or two. Didn't happen. Why not? We the price of oil dropped. So what happened after that? All the oil companies ran away. It didn't matter how nice we were to them. They needed to do what they needed to so they ran away from The North Slope.

First that shows you that tax cuts do not create jobs. Demand does. It doesn't matter how much in tax cuts we can give if someone can't make money or not enough money it isn't going to magically appear. And companies are not here out of the kindness of their hearts. They're here to make a buck. And that's fine. We're all interested in making money. But we don't have to give our land and our oil away cheaply.

Here's another video on FedEx and UPS.


Kentucky gave nearly two million dollars to create 12 jobs. Or there's even the worse story of Tennessee giving 14 and a half million dollars to create zero jobs. That's right zero.

It's okay that these companies want to make money. Like I said it's what we all want to do. But why should they get a tax break and we all have to pay most if not all our taxes? Why should they get subsidies without proving they can make jobs to begin with? I think the Indiana story is great. They could have gotten an additional 8 million dollars but they didn't want to create the jobs to do it. It's because they were not interested in making more jobs they just wanted the money.

Second point. Wouldn't be easier if we didn't give them money only to have them stab us in the back? These companies should go to banks to gain more capital instead of going to our politicians. The reason they don't is because they would have to pay the banks back.

If The Rams and The NFL built their own stadium in St. Louis instead of having taxpayers fund it than they could leave. Sure there would still be hard feelings from fans but there wouldn't be any care for a lawsuit and St. Louis wouldn't look like a bunch of idiots for funding this thing and having it thrown in their face. The Rams were there to make money, not to be their friend.

A major reason I'm running is because right now we're in talks to open ANWR for drilling. I'm sure we're going to hear that so and so needs a tax cut or some money to create jobs. I'm telling you to not believe them. If they don't have the money than they shouldn't be here. If they want our oil than we should make them pay for it. These companies are not our friends. If we open up ANWR they'll be here to make money. And that's okay. But we shouldn't let them take us for suckers.

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