| There is a killer on the loose that can steal, kill, | | | | paid, and discretionary funds to donate to local |
| and destroy the economy: high taxes. In areas of | | | | causes, community events, even state backed |
| the world where taxes are very high, economies | | | | groups such as the symphony. Raise taxes too |
| are generally very weak. Where taxes are low, | | | | much and it will have a ripple effect on the way |
| economies are usually much stronger. Clearly, the | | | | that businesses help out the local market. |
| advantage for any government is to keep taxes | | | | Consumer confidence nosedives. Consumers who |
| in line in order to keep the economy humming. | | | | feel too much of a tax burden will pull back and |
| Let's take a look at just how low taxes can fuel | | | | not spend. When consumer confidence drops, |
| economic growth. | | | | everyone suffers. The purchase of vehicles, |
| Some politicians fail to grasp an essential point | | | | homes, discretionary goods, and the like will drop. |
| when it comes time to raising taxes: the more | | | | Instead of purchasing higher end items, |
| taxpayers have to pay in taxes, the less | | | | consumers will opt for the best prices thereby |
| discretionary money they have available to them. | | | | threatening entire areas of discretionary spending. |
| Specifically, high taxes hurt because: | | | | On the other hand, if consumers believe that they |
| Businesses have less to invest. The bottom line | | | | have enough to live on, they may go ahead and |
| for every business is profit. When a business | | | | purchase that new vehicle now instead of waiting |
| makes a profit, they have more money to spend | | | | a year or too. Guess what? The state |
| on other things including: hiring additional | | | | government reaps a nice tax on the purchase of |
| employees, expanding their business, contributing | | | | a new vehicle too! |
| to the local economy, etc. New employees, | | | | Cash strapped governments often plead for |
| means more tax revenue as employees pay | | | | additional revenue through higher taxes. Instead of |
| social security taxes, incomes taxes, etc. More | | | | resorting to automatic tax increases, taxpayers |
| profit means that the business will funnel some of | | | | should demand that governments consolidate |
| those profits back into the business in the form | | | | services, trim expenses, and put a freeze on |
| of expanded services, a newer building, the | | | | hiring until they get their house in order. Failing |
| purchase of goods and services, etc. In addition, | | | | that, consumers and businesses can expect stifling |
| the local economy benefits when a business is | | | | increases that can only hurt the economy. |
| thriving through their share of property taxes | | | | |