If wages are cut, individuals drastically cut their personal spending. Intuitively, they know that you can’t spend money you don’t have . They also know increasing your spending will result in poverty & debt. Robbing neighbors is not an option either. Increasing spending to increase income is a recipe for disaster. How hard is it to understand that government can not spend & tax to improve the economy, create jobs, & help businesses? Kansas is cutting taxes with positive results & Britain is noticing.
“Experience, in other words, is already beginning to mirror what other low-tax states achieve. If we take the 15-year period between 1998 and 2013, the 50-state average for private-sector job creation was 8 per cent. Yet for those states such as Texas, Florida and Nevada that don’t impose income taxes at all, the rate of growth was 18.3 per cent, against 5.6 per cent for those that do. Tax competition, it seems, works in practice just as you might expect it to in theory.”