The idea is that by taking less tax money out of businesses/companies/etc it gives them more money to re-invest into their company. For example, if a small company pays $1000 less in taxes this year, they can use that money to buy a more current computer for one of their employees, which makes his work load more efficient, and presumably costs the company less in computer repairs, which saves the company even more money, that they can again re-invest into themselves.My point is that corporations and companies don't create jobs simply because they were able to avoid paying taxes or paid less taxes. Any sensible company will only hire more workers because the demand on their product outstrips their production capacity.
Yes, more liquidity affords a company the means to expand but there is no expansion if there is no demand for product beyond the present production capabilities. In the last couple decades whatever liquidity tax breaks given to corps has certainly enabled them to expand......overseas.
Conservative thinking dictates that less taxes paid by these corps and companies will spawn new job offerings but it doesn't make logical sense. Again, no new demand no new jobs. Of course the liberal end thinks that endless spending will wash out at the end of the day but unfettered spending is a recipe for huge defecits but then again this type of thinking isn't reserved solely for liberals. Conservatives are just as wasteful and reckless with spending. The only difference is in the areas that they spend.
Short term, no it doesn't create jobs. But it does have them spending more money, which fuels their suppliers/service providers, etc, which could lead to more demand, and more jobs being made down the line.
The short form is, the more discretionary spending money available, the more demand grows. The more demand grows, the more jobs become available, etc.
It's no quick fix, but neither is raising taxes. Raising taxes always results in less tax revenue over time, unless you keep raising the taxes.