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A successful businessman – and Democrat – offers the view below on the tax-cut bill passed by the legislature and signed by Governor McCrory. The writer is Reid Overcash, who has been a business owner and CEO for four different companies.
 
“There is no short-term successful strategy to creating jobs by reducing taxes. No one hires new employees based on a tax cut. As a CEO over the past 30 years, I can tell you there is only one reason to hire new positions and that is that demand for your product or service exceeds the capability of the current staff to provide it. In other words, you hire because you have to, not because your taxes are cut. To be fair, it does put more money into the stockholders’ pockets that they might, in turn, spend for a new car or a vacation home. But they will not hire new staff if the current staff can fill all the orders.
 
“Jobs are jobs, regardless if they are in the public sector or private sector. It makes no sense to eliminate 30-40,000 public jobs thinking that will reduce unemployment. (Republican leaders) are mostly hurting the rural areas that can’t afford to make up the difference. They are hurting their own supporters. I wonder how long it will take for them to realize their fate.”

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2 comments on “A CEO on Jobs and Tax Cuts

  1. clarence swinney says:

    SNAKE OIL?
    Is President Obama selling Delusions or Reality in his speaking campaign?
    We lose on Chained CIP on Social Security, no minimum wage increase, cuts to Medicare.
    When will we remove the awful Bush Tax Cuts that drain the Treasury Revenues?
    The gains have been among the Elite financiers. Bankers and Wall Street rich.
    They paid themselves record bonuses in years preceding the Recession then in a display
    of ingratitude did so in 2009 and since then.
    The direct result of that looting, since 2005, produced the crisis of explosion of government deficits due to a collapse in tax revenues, a rise in payments under programs such as unemployment and food stamps.

    When will we see results not constant Preaching to the choir?

  2. dap916 says:

    I like how swinney is almost always the first to post here on TAP when a new Front Page presentation is put up. Either old Clarence is always on the computer or he’s got some inside scoop going on. Well, whatever. Probably just a “conspiracy theory”. He gives me my daily dose of humor and for that, I appreciate him in a very big way :-).

    Gary, the quotes you’ve put here from your CEO Mr. Overcash tell a lot about him. First, ya gotta wonder why he was a CEO of four different companies…I mean, sounds to me like there were “issues” with him in some of those positions. Second, he isn’t giving an honest assessment of how tax cuts affect businesses. Saying that tax cuts for businesses would just mean more money in stockholder’s pockets so they can buy new cars and vacation homes is ludicrous. It’s good rhetoric and spin, but that’s not what most businesses do when they see less taxes. Oh, sure, higher profits through less taxation means the companies will be stronger (that’s a big conservative principle), but in most cases it means companies grow and are able to avoid layoffs and do, in many cases, hire more people as they grow. The bigger the company, the more successful the company, the more the stockholders earn. That’s where the new cars and houses come from, my friend.

    An increase in jobs in the public sector costs more and more money for government. Government’s only revenue source is taxation. So Mr. Overcash’s statement “jobs are jobs, regardless if they are in the public sector or private sector” is absurd. More jobs in the public sector causes a need for more government revenue thus a greater need to increase taxes. It’s not rocket science.

    It’s nice that you can find a man that is a HUGE exception in the business world to quote that believes as Mr. Overcash does. But, he truly is a HUGE exception. How many CEO’s do you think believe as he does, Gary? As usual you’d never answer any question like that, but, people that do read this know the answer.

    This state needs more industry…more employers. To get that, we have to be a state that taxes industry and other employers at a level that entices them to come here. It’s just a fact. I think throughout the years here you have learned what my background and education is so you know I’m not talking “out of school” here in my assessment of Mr. Overcash. Most people with the same background and education as I have would agree with me.

    Sad thing is, I think you know that and yet, you post this anyway.

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