The maxim – Tax Cuts Spur Investment. Give the small business owner a tax cut and s/he will invest it in their business.

The evidence offered is large number aggregation. Truths without much specificity. The claim cannot be supported by close examination of any longitudinal data covering a set of businesses or investors showing that the money was used to add jobs to an existing business or create jobs in a new business.

Suppose you are a millionaire, the tax cut you will receive under McCain is $12,000. What do you do with this money?

The econocaste says that you will use it to expand or start your business, thereby increasing jobs. Dear Mr K-streeter, how many Joe the plumbers will you hire for $12,000? Dear Joe, can you work for $12,000?

What I see happen among those millionaires and webionaires I know, is that money would be spent at restaurants, oh and sales of assets to take advantage of the write-off. This means that at best capital would leave the asset pool, rather than remain for manager’s use.