explain, jeffy. it honestly sounds like you're spouting republican rhetoric.
pete (and me, for that matter) are trying to have 1 thread where all the political bullshit is thrown out the window.
What creates tax revenue? Income
What creates income? Jobs
Is it the "rich" or the "poor" that create jobs? I'll let you answer this one.... and the government doesn't create production jobs, jobs which positive economic value to society
When jobs are created, what happens? More income
When there's more income, what happens? More tax revenue!
So, if taxes are increased, what do businesses do? They pass along the cost of business to their customers (price increases) or to their employees (layoffs, wage cuts/hour reductions, benefit reduction)
Price increases are fairly neutral to sales tax revenue, since the additional taxes derived from the price increase is offset by fewer items purchased.
When taxes on the business go up, layoffs and wage reductions to the employees directly impact their purchasing power. Additionally, lower income means lower income taxes from those people.
The converse of the situation follows. Lower taxes (to a point, of course) allow businesses to reinvest earnings into the system in the form of hiring, business expansion, plus they pay more taxes based on the fact that they earn more. And more employees means more income tax and more spending (sales tax revenue). Increased employment also leads to decreased entitlement payouts, be it unemployment, welfare, food stamps, so the government's "need" for more money is decreased.