JohnAcker wrote:And when exactly have higher taxes resulted in more jobs? Aside from government jobs, of course.
In science we have these things:
2. Empirical evidence
You form theories - the value of these theories depend on whether one can predict the future using ones theories not whether they are common sense or just fit ones world view. If having high taxes were bad for the economy then the countries with high tax rates would be poor and the countries with low tax rates would be rich. Exactly the opposite is the case the richest countries have the highest tax rates one can therefore immediately dismiss the theory that having high tax rates is bad for the economy.
The only two possibilities left is that higher taxes actually make countries richer or that the tax rate is not a relevant factor in determining whether a country is rich. One explanation for this could be that normally there is a connection between the amount of taxes and the amount of money the government can spend. The republicans have historically have difficulty in understanding this but seem to finally have understood it (at the worst time possible). If we have high taxes then the government can use more money on things that makes the country richer eg. free education which means that the people will earn more money and the country will be richer.
Anyway to answer your question normally it is a pretty bad idea to raise taxes in a recession and it is also a pretty bad idea to cut spending since both will increase unemployment. What you need to do is raise taxes when there is a boom and use the money to 1. pay of your debt so you can borrow money in the next recession, 2. invest in things that will make you richer in the long run e.g. education. That is what we have typically done in the scandinavian countries and the reason why here in Denmark we had no debt when the recession hit, why our minimal wages are 3-4 times higher than in the US. and why we have half the unemployment rates that the US have. Socialism rocks