Originally Posted by chiefforlife
Given that this thread started out about job creation...wouldnt charging business's more money to borrow, stifle job growth in the same way as raising taxes?
The difference being, the government would get the gain as opposed to the banks.
NO! Why? Because you are offsetting that cost by putting more disposable income into the economy.
In other words, if I am spending $200 a month less on gas and food I am spending that $200 in your store. That increases your customer base thus allowing to compensate for higher interest rates
The government gets more $ through increased sales tax and incomes from the increased spending in businesses
See, that's called growing the tax base. As a business owner it would be easier to handle higher rates if I have more people walking through my door because they have more money to spend in my shop instead of the gas station.
On the other hand if customers are still spending out the ass at the gas station they don't have extra $ to spend in my shop and higher taxes are going to hurt even worse.