Cutting taxes to get more taxes makes sense to me. If a company earns $10 million and pays 30% tax that is $3 million in taxes. If you cut the rate to 20% it gives the company incentive to make more money. Now the company makes $50 million with the new tax rate of 20% it means the government is getting $10 million instead of $3 million. Not to mention the growth of the company enabled more workers to be hired and thus generating more income tax on the employees.
“If a company earns $10 million and pays 30% tax that is $3 million in taxes. If you cut the rate to 20% it gives the company incentive to make more money. Now the company makes $50 million with the new tax rate of 20% it means the government is getting $10 million instead of $3 million.”
Yes. Your high school economics textbook called it “the law of supply and demand,” which tells us that supply varies inversely with price. Somehow news our wise leaders never heard that making something less expensive can give you more of it.