How would cutting taxes improve the job market if people who are unemployed already are not paying any major taxes? Wouldn't it only help those who are gainfully employed?

Cutting taxes supposedly helps businesses by lessening the amount of money they pay the government. That would give them more money with which to hire more workers.

Wouldn't it only help those who are gainfully employed?

Businesses pay a lot of taxes. If they don't have to pay as much to the government, then these businesses theoretically will have more money to hire more workers.

The assumption is that businesses want to expand, and so giving them more money will help them hire more people.

but how would this cutting taxes improve the job market if people who are unemployed already are not paying any major taxes? I am not seeing how?

Because not everybody is unemployeed. If the unemployment rate hits 10%, that would be a lot. And, even unemployed people still pay taxes; although the taxes may not be income taxes. So, as Ms Sue correctly points out, lowering taxes gives most people more money to spend, and by spending more, firms need to produce more, and will need more workers to do so.

how would econmic help you in the future?

The relationship between cutting taxes and improving the job market is a complex and debated topic. While it is true that unemployed individuals may not directly benefit from tax cuts because they are not paying taxes, there are indirect ways in which cutting taxes can potentially stimulate job growth.

1. Encouraging business investment: Lower taxes can provide businesses with more disposable income, which they can reinvest in their operations. This, in turn, can lead to increased business expansion, hiring more employees, and stimulating job creation.

2. Stimulating consumer spending: When taxes are reduced, individuals may have more disposable income. This, in turn, can lead to increased consumer spending, which can boost demand for goods and services. As businesses experience increased demand, they may need to hire more workers to meet the rising production needs.

3. Attracting and retaining businesses: A lower tax burden can make a jurisdiction more attractive for businesses to operate in or relocate to. When businesses choose to set up or expand operations in an area, it can lead to job creation and helps to cultivate a positive business environment.

4. Promoting entrepreneurship: Lower taxes can incentivize individuals to start their own businesses by reducing the financial burden. When entrepreneurs are encouraged to establish new ventures, it can lead to job creation and innovation.

However, it is important to note that the impact of tax cuts on job growth is not universally agreed upon. Critics argue that tax cuts primarily benefit higher-income individuals and corporations, whereas lower-income individuals might not experience significant improvements. Additionally, the effectiveness of tax cuts in stimulating job growth depends on various factors such as the overall economic conditions, government spending, and other fiscal policies in place.

To gain a balanced perspective and assess the potential impact of tax cuts on the job market, it is crucial to consider different viewpoints, review economic research, and analyze real-world examples. Economic analysis typically involves studying multiple variables and taking into account different economic models and theories.