Myth: Cutting taxes for the rich creates jobs.

Reality: Corporations are hoarding, not investing. 
The Republicans and Obama justify their tax cuts for corporations by claiming this will spur investment and create jobs. All the evidence points in the opposite direction. According to the Federal Reserve, U.S. corporations held a record $1.93 trillion in cash on their balance sheets in 2010. Rather than investing this money in new job-creating enterprises, these companies sat on their money or gambled it on new speculative bubbles. 

Reality: The bailouts did not create jobs. 
In 2009, after taxpayers bailed them out, bank profits rose 66% to a total of $29 billion. But nearly half of all the money that the big banks sucked from taxpayers has been loaned out to foreign commercial and industrial borrowers. The amount of loans given to small businesses and farms, critical for job creation, actually declined 2.8%, (FDIC, 6/30/10). 

Reality: Layoffs are profitable for corporate tops. 
In 2009 the top 500 U.S. corporations laid off 697,448 workers. Just 50 companies accounted for over 75% of those layoffs, and CEOs at those 50 firms “earned” 42% more pay on average than their peers in the S&P 500. Three-quarters of these companies announced the layoffs in periods of positive earnings, with their profits increasing 44%, (Institute for Policy Studies, 9/1/2010). 
Whirlpool laid off 5,000 workers during its most profitable year, (Investor Report, 2010). Microsoft laid off 5,000 workers and still managed to be listed as one of America’s top ten most profitable companies. IBM cut over 10,000 jobs in 2009, receiving $12.3 billion in profit, doubling the value of its stock, and paying its CEO $22 million, (Economic Policy Institute, 12/23/2009).