Active economy boosts revenues

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Why is it so difficult for some people to understand why lower taxes for all create jobs and will actually raise tax revenues? If people have more money in their pockets they will do one of two things: spend it or save it. If they spend it, the businesses they spend money at will make more money and do three things: hire more people to handle increased business, save the money and pay more taxes. The people they hire (jobs created, by the way) will spend and/or save their paychecks. The businesses where they spend their money will do the same. The cycle continues. And any money that is saved along the way also raises more revenue as it is invested in companies who want to expand or grow which creates more jobs and raises more revenues. The bottom line is that tax revenues are not increased by higher marginal rates, they are increased when economic activity is increased. You don’t stimulate greater economic activity by taking money away from the people who create economic activity. You stimulate it by making sure they have more money in their pockets to spend or invest. John Manuola, Auburn