Tax breaks aren’t a lot of help when you don’t have an income. Lower costs are only one way to increase profit. Increased income also increases profit. An investment in our infrastructure, green technology, and basic research will create income for businesses. It could create enough business to generate the need for more businesses.
An investment in our infrastructure and research can also lower costs for business. A good transportation system makes it easier and cheaper to do business. A good education system means that companies don’t need to teach basic skills to their employees. Green technologies can lower energy costs for business.
In a strange upside down kind of way, lower business taxes can lead to increased business expenses. When the government invests in our country, we all profit.
Obviously, this post was hyperbole to make a point. It’s the bottom line that counts. No resonable person would turn down increased income, or lowered operating expenses or taxes.
But the often-mentioned Joe the Plumber reminds me that there are people that would turn down lower taxes. Joe acknowledges that he would pay less taxes with Obama’s plan, but he doesn’t want the tax break. He would rather make sure that his taxes are low when he becomes rich. How he expects to become rich is another story.