Question

The CEO of a large corporation is against a raise of corporate taxes that would cut into his profits. He is most likely to argue which of the following to support his position?

Answer 1

With lower taxes, his business will be able to grow and hire more people, helping the economy

Step-by-step explanation:

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Answer 2

That corporate taxes will force them to hire lesser employees

Step-by-step explanation:

Those who oppose raising corporate taxes tend to argue that profit that being cut down by taxes can actually be used by company to hire worker's salary. Meaning that they associate raising corporate taxes lead to unemployment.

This statement contradicts various studies that being done by several well known establishments. One of them was a study conducted by New York University study in 2014. The study found the increasing corporate tax rate didn't really affect employment creation, unless those tax cuts were offered during economic recessions.