Column: Looking At Job Prospects After Election
This story was written by Trevor White, Daily Toreador
Sen. Barack Obama has taken a recent lead in the polls. This has me quaking in my boots, not only because I fear for the security of our nation, or because I believe that capitalism and free markets are the lifeblood of any democracy, but mainly because I have a job now and would like to have the opportunity to get an even better one after I graduate.
In the current economic condition of America people have begun to see the impact on their employment. According to the U.S. Bureau of Labor and Statistics, since January over 1.5 million people have been affected by mass layoffs, and there are only more to come. But before anyone casts a ballot in November they should look at what each Presidential candidate's economic plans will do to the prospects of future employment.
Sen. John McCain has proposed an economic policy that is pro-growth. He does not propose to create or raise any taxes. He wants to cut taxes on businesses, and reward them with a tax credit for investing profits in research and development.
How does Obama's plan differ? I'm sure you have all heard his campaign advertisements that say 95 percent of Americans will get a tax cut, but what will happen to the other 5 percent? Well for anyone earning over $250,000 per year, they will see their tax rates increase dramatically in order to pay for everyone else's tax cut. You may see this as fair - after all, $250,000 is a lot of money - but let's pause and think about who many of these dastardly wealthy people are.
They are small business owners, the people who, according to the bureau, are responsible for 70 percent of the current jobs in America and for 80 percent of the new jobs created. It's the men and women who took a risk and opened a local bakery, restaurant, bookstore or are providing some other service that we have a need for.
Chances are that if you are currently working, you are employed by a small business owner who will see their taxes increase under an Obama administration. How will that affect you? Well if you are the most expendable employee then you had better update your rsum. No business owner is simply going to absorb the loss in income, they will pass it down, either to the consumers through a price increase, or they will cut their expenses by laying someone off.
Sure, Obama's economic policies will instantly and directly benefit the middle class through tax breaks, but what about indirectly? It will be harder for middle class workers to find a job, or keep the jobs that they have.
The United States is already one of the most heavily taxed nations in the world. This is why large corporations keep exporting jobs. Why do you think General Motors and Ford are suffering while companies like Toyota and Nissan keep growing and supplying more nations around the world? In fact, our own Bureau of Economics research states that countries are more likely to be successful if they become tax havens.
The bottom line is extraordinarily high taxes were the main cause of the American Revolution. Why don't we learn from the past and realize that if we continue to increase our taxes it is only a matter of time before the next revolution.