Lower Taxes, More Revenue?

Source: Show-Me Institute
by Corianna Baier

“When a tax cut is proposed, critics often question how the government can function with the loss of revenue. But lowering taxes doesn’t necessarily mean the government will get less revenue, especially in the long run. While taxes create a lot of adverse incentives, those in favor of tax cuts often predict that a tax cut will create incentives that have a positive effect on the economy. Companies and individuals certainly consider the tax climate when making major decisions (like where to locate or what to invest in). States and cities with lower tax rates may find that many of those decisions work out in their favor.” (04/28/22)