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Which Is More Effective: Tax Increase or Tax Reduction?

By March 16, 2009Business

This article struck me as sounding a bit counter-productive. The headline reads: Tennessee considers business tax hike to aid jobless.  I understand the unemployment fund has been tremendously burdened and that those who have lost their jobs need the benefits.  I also understand how the fund is generated. Each employee pays into the fund for each employee as a form of tax.  I guess what seems strange to me is that by taking money from businesses to pay more in taxes, seems to take money away from their ability to hire more people.  As a former small business owner, I know how much taxes took away from my ability to invest more in my business.

I realize the economics may not work that way, but I almost wish the title could read: Tennessee considers business tax reduction to aid jobless.

What do you think?

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Ron Edmondson

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