What we have here is Keynesian vs supply side. I’ll let you guys explain virtues of Keynesian if you care to
It's a very simple theory to understand. I'll give it to you in a nutshell.
Give tax cuts, or spend money on the middle class, they go out and buy stuff here in our own economy, increase consumer demand, stimulate economy, create jobs.
Give tax cuts to the wealthy - they spend that money in Dubai.
There you go. Keynesian economics 101. Why we favor tax cuts for the middle class, not the wealthy.
If a company is left alone as much as possible with low if not no taxes and reasonable regulations to protect environment and worker safety, it can thrive grow and prosper.
Actually, some companies "thrive and prosper" under regulation, because government regulation actually removes some inefficiencies that make them less competitive. (5 has posted some stuff on this before.)
Think about it this way. Have you ever noticed that the better & fairer the rules are in a game you play, the more enjoyable the game? Whereas if you play with no rules it quickly becomes a lousy game? Government regulations are like those rules.
It can compete in a world market which NAFTA gave us for good or ill,
No, NAFTA only linked the economies of three countries - for ill, mostly because it lacked sufficient consumer & environmental protections. But the world market is a lot bigger than the regional one NAFTA created. Indeed, regional trade alliances like NAFTA are responses to the larger global market. See: globalization, world systems theory.
When said company prospers it hires lots of people
Want to know something interesting? Many businesses are doing far better in 2011 than they were doing in 2009, but they aren't hiring more people.
That's the problem with your theory. What some labor economists have found is they have additional workloads, but instead of hiring additional workers, they are making an existing 1 worker more and more do the work of 2.
Cheaper, "efficient" -- more profitable. Unfortunately, the profit motive often causes businesses to think in bad ways. They should be hiring more workers, but don't want to increase payroll. That would cut profits.
All these people pay taxes and tax revenues go up proportionally.
Alas, the Laffer curve is a discredited idea.
Cut taxes - revenues decrease in almost every case, just like you would expect
. The miraculous contra-phenomenon Art predicted somehow never materializes.