[quote=dumbrenter]AN, Consider the following 3 potential outcomes:
1. Higher rates are regressive and per your account make businesses fire employees.
2. There is no relationship between tax rates and an employer’s decisions to hire employees.
3. Higher rates are stimulative.
You take position 1 above while I claim position 2. the first one is also popularly claimed by many conservative & right-wing sites & media i.e. a small business owner complaining that he would have to fire employees if his tax rates go up.
To me, this claim does not make empirical sense as explained earlier and I’d like to know if I am missing something.
But in support of item#1, you respond with an argument against item#3.[/quote]
I agree with those 3 potential outcomes. My example of #1 is meant to disprove #3 and not so much as a resounding endorsement for #1. I think for some business (maybe most) more likely to do #2. But I haven’t see any data for either option yet. I just think #3 is counter intuitive.
