Somebody prove me wrong

Here's what I think - somebody prove me wrong:

1. Cutting taxes for small business owners will not create jobs.
 If a small business owner has more money from lower taxes, that does not mean that they will create jobs.  They will create jobs when demand on the business necessitates it, or when they perceive that expanding their business will equal demand.  Only a fool is going to create a job that isn't necessary to run their business.  Until demand goes up, there is no reason for the business owner to create a new job.

2. Cutting taxes for the wealthiest Americans will not create jobs.

For the sake of argument, let's define "wealthiest American" as someone who makes over a million dollars a year.  That person is probably already spending as much as they would like to spend.  If given more money, they will in general either increase savings or investment.  Increased savings does not create jobs.  Increased investment doesn't create jobs - rule #1 above applies generally to both small and large businesses where people would invest.  A "demand" for investments, on the other hand, leads to overinflated prices for investments - a bubble.  Collapse of the bubbles can be dramatically bad, as we've seen.

3.  Cutting taxes for the middle and lower class will create jobs.

Middle and lower income Americans generally have needs and desires that they cannot normally afford.  That might include spending more on the basics, such as food, clothing, transportation, shelter.  They will support charities, but only as possible in their means.  They forgo many luxury expenses such as travel that they cannot afford.  Given additional income in the form of lower taxes, middle and lower income Americans will likely save and invest less than they will spend.  Their spending will increase the demand for business.  Increased demand on businesses will spur job creation.  More people with jobs - the vast majority of which are in the middle and lower income levels - will put more money into the spending cycle.  At the same time, more income for businesses puts more money into the hands of business owners.

So how do we cut taxes for the lower and middle class Americans?  First, you increase taxes on the wealthiest Americans, and balance that with tax cuts for the lower and middle class Americans.  That's called "no tax increase" in the overall.   After the economy picks back up, you then increase select taxes for small businesses if necessary to then help cut the deficit.  Small businesses will have already reaped the benefit of the increase from the lower and middle class spending, and therefore a tax increase should be a neutral move.


Like I said, prove me wrong.  I'd like to know if I'm right.