Again, not a partisan issue … this approach to fund something by penalizing one group is a very bad idea. Cigarette and alcohol taxes are in place and as high as they are, specifically to change behavior. Making something far more expensive does materially impact the way people behave. It causes them to perform more cost-benefit analyses. And they change their behaviors.
I am quite certain that those who designed this legislation did not anticipate that by significantly increasing taxes on businesses, that this would impact … I dunno … employment?
From the article:
Why would you grow your business if, by doing so, you would make less money? You wouldn’t. The engine of the economy, small business, would simply stop hiring, and likely shrink a bit so that they don’t take an even bigger hit than they already have.
The article goes on:
Yes. You shouldn’t ever raise taxes in a recession. You cut them, hard, to have that capital circulate in the job-creation section of the economy. Higher taxes means less capital for growth, less for purchases, less for general private sector hiring.
This isn’t a political party issue. This is a general economic issue. Part of the reason the recession of 29 turned into the Depression of 33-40 was the massive tax increases.
This is known to be a very bad idea. It has caused widespread prolonged economic damage. So why are we repeating these mistakes?
A certain quote from George Santayana comes to mind here.