It is purely a matter of common sense that tax cuts generate economic growth, while tax hikes cause business to shut down or flee. After all, why stay in business when half your profits are being taken by the taxman? That’s why according to the IRS, over 400,000 tax-refugees fled from the top 10 taxing states to lower-taxing states in 2007 alone.
This is hardly rocket science.
Especially damaging to jobs are corporate tax hikes. As we all know,
corporations don’t pay taxes—people do. These tax hikes result in massive job losses as businesses close their doors and move interstate – or overseas. In fact, the marginal US corporate tax rate (including state and federal taxes) is a whopping 39.3% - the
second highest in the world! But legislators just don’t get the message and refuse to cut corporate taxes. In some states, like
New Jersey ,
Oregon, and
Illinois, in defiance of all laws of logic and reason, corporate tax rates have actually increased in the last 6 months!
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