From Ed Feulner, president of the Heritage Foundation:
General Motors wanted to boost sales this year, so it cut prices.
When the automaker offered its cars to the public at the same prices it charges employees, cars started flying out of showrooms. In fact, the deals were so good that other American automakers also had to slash prices in order to keep pace.
It’s simple, really. People respond to financial incentives. Cut prices and they’ll buy more.
The same rule applies to tax rates. Cut them, lowering the price of work, saving and investment, and people will earn more. That will improve the economy and end up boosting tax revenues.