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Thursday, October 31, 2013

We need more jobs not higher taxes

What this area needs more than anything else is jobs and economic growth. It we can get those two things, many of the other problems we face such as school funding will be greatly improved. Higher taxes mean fewer jobs and less disposable income. Businesses in the area will have less money to use for hireing additional workers or purchasing goods and services from other local businesses. Those that can relocate may choose to move to an area with lower taxes. Businesses that might consider moving to the area may not because of the higher taxes.


From an article titled What is the Evidence on Taxes and Growth by William McBride
Source http://taxfoundation.org/article/what-evidence-taxes-and-growth

William McBride states,"This review of empirical studies of taxes and economic growth indicates that there are not a lot of dissenting opinions coming from peer-reviewed academic journals. More and more, the consensus among experts is that taxes on corporate and personal income are particularly harmful to economic growth, with consumption and property taxes less so. This is because economic growth ultimately comes from production, innovation, and risk-taking."

The Ohio State Legislature has moved to reduce state income taxes to make Ohio a more business friendly state. The goal is to cut taxes to make Ohio more competitive with other states in order to attract new businesses to the state and encourage those already here to stay and expand. The same principle applies at the local level.

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