Posted by: Rational Voice | March 30, 2011

Business and Taxes

Here is another great example of why lower taxes are not only good for the economy but also increase government revenue. Caterpillar is thinking of leaving the state of Illinois because of their high taxes and the governor does not get it. If these jobs leave the state, not only will it leave more people out of work but those people, with no income, will not be paying taxes, thereby decreasing tax revenue. If they were to keep their corporate tax rate low, not only would they keep those jobs in the state, they would probably create the environment that would allow Caterpillar expand their operations, creating more jobs. New jobs will mean new tax payers. New tax payers equals more income tax revenue as well as increased economic activity. How do these people not understand this concept?

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