Is raising resident taxes and lowering corporate taxes a good idea?
In this article: offthechartblog it talks about how Wisconsin, Michigan and other states are raising taxes for residents and giving tax breaks to corporations. With an increase in taxes the residents of these states now have a decrease in disposable income. The question is will this absence of funds be reflected in a decrease of sales to these corporations that received a tax break? In other words will the demand for goods(clothes, products, cars etc.) decrease as taxes of residents increase? Or will these corporations reflect the tax breaks in there pricing? Or remain unchanged? Of course there are those companies that do much of there sales in other states or countries that have not yet received a tax increase. But for those corporations that do most of their business in state what will be the result of the tax increases and decreases? Would they be better off not increasing or decreasing taxes?