Final answer:
Business owners prefer low tax rates because they enable them to retain more of their profits, which can be reinvested to potentially create jobs and promote economic growth. Tax incentives from state and local governments are also strategies to attract and retain businesses within their regions. The correct option is (a) allow them to keep more of their profit.
Step-by-step explanation:
One reason business owners prefer low tax rates is that low tax rates allow them to keep more of their profits. Savings and investments are significant for economic growth, and businesses are more inclined to invest when they can retain a larger portion of their earnings. Additionally, governmental policies, such as low capital gains taxes, have historically been used to promote investment and stimulate economic expansion.
Furthermore, state and local governments occasionally offer tax incentives to attract major industries which they recognize as key drivers of a state's economic development, employment, and resources. These incentives are conducive to business expansion, with subsequent benefits like job creation that can have broader socioeconomic impacts.