How increasing business taxes weakens the economy of a nation?

If we increase business taxes, companies would have to find ways to maintain their profitability and survive. Among them, four options have been often applied. First option is to work more to generate the same incomes as before the taxes have increased. If so, would people agree to work more without being paid more? Second option is to fire employees to reduce costs. If so, would unemployment be a solution for a nation? Third option is to sell products and services at higher prices to maintain necessary margin to pay employees wages for example. If so, customers would have to pay more to buy the same things as before the taxes have increased. Therefore increasing business taxes creates inflation. Fourth option is to take a loan. If so, would debt be a solution? Limiting or decreasing taxes to encourage people growing their businesses should thus create new jobs, decrease unemployment, slow down inflation, limit debt and reflate the economy. As Ronald Reagan has said: “The problem is not that people are taxed too little, the problem is that government spends too much”. May the government support businesses, not charge them to spend more.

CB

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