1) Tax cuts would have to generate an unrealistic amount of economic growth to boost revenues enough to fully offset their cost.
2) Tax cuts might produce very little – if any – economic growth and, consequently, little to no additional revenues.
3) Revenues lost due to tax cuts would eventually require spending reductions, which would pull dollars out of the economy, reducing the beneﬁts to the economy from tax cuts. [pdf link]
Full-time Budgeteer Jean Ross also points out:
1) State and local taxes are not key factors in determining where companies do business.
2) All state and local taxes combined represent a tiny share of business costs.
3) Most USA business pay little or no state income tax.
Please linger a moment on Jean’s portrait. Missouri has its straw, but when is the last time you’ve seen a better askance?