Here is what happened when business taxes went to zero.

Archived From: Off Topic
  • Page :
  • 1
  • Text Only
rated:
Great Planet Money podcast about what happened when Kansas reduced small business taxes to zero...

http://www.npr.org/sections/money/2014/10/22/358105415/episode-577-sam-brownback-s-kansas-experiment 

Some small businesses bought some equipment, but there was no surge in hiring more people. Businesses explained that cutting their taxes did NOT increase their business so there was no need to hire a lot more people.  Now government debt is surging because revenue from taxes has dropped so much.... duh!

Can Trump's plan to cut taxes for big businesses have a different result?  We'll see. If it does not work out well, then you can bet the pendulum will swing back to raising wages for workers as a way to increase business so that businesses will need to hire more people.   And then there is still the idea of "helicopter money" or the "universal basic living income" of the Netherlands.

Economics is so much fun... until someone gets hurt.

 



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017