'Job-Killing' Tax Hikes May Not Be So Lethal

The notion that the rich drive job creation and that taxing upper incomes is a "job killer" is a powerful line and difficult to refute between commercial breaks. But like a lot of political memes, it suffers from one shortcoming: It's not at all clear that it's true. Cutting taxes on upper incomes may have economic benefits, but it's not an especially powerful way to create a lot of jobs quickly. If politicians are looking to create jobs right away, they'd be better off concentrating their efforts lower down on the income ladder. The poor and middle class are more apt to spend extra money, maybe on groceries or a new refrigerator, helping to spur the economy immediately. The benefits of the tax cuts are muddied further if there's a budget deficit.