Higher Taxes and Growth
If you don’t believe that higher taxes negatively affect revenues and growth, think again. I see it from the perspective of a small business. When almost half of my profits go to pay taxes, and the other half needs to be there for the next month’s cash flow needs, there isn’t anything left over to fuel growth or new hires.
That leads to a stagnant business environment and higher unemployment. Look no further than the high tax states in the Northeast to understand how higher taxes are impacting their revenues. In Maryland, the idea of soaking the rich led to higher taxes fro the rich. Since no one has to stay in Maryland, higher taxes made them leave.
The end result? Less taxes for the state and fewer millionaires calling MD home. Where did these people go? Lower tax states like Florida and Texas benefit with job growth when these people, mostly small business owners, bring their businesses there.
