Higher taxes on corporations or big businesses generally encourage businesses to invest in their business to grow their business, more employees hired, instead of handing their money made in profit, over in taxes.
Lower tax rates discourages reinvestment in to the company....the opposite of higher taxes.... They buy back stock, instead.
I think this is a load of crap. Taxes are an expense, that goes into how much a company has to pay to produce or supply something. And when a company does a cost/benefit analysis to help them make a decision for whether or not to expand an existing business or start-up a new one, the costs of supply are weighed against the perceived revenue that is based on whatever price the company can charge to make an acceptable profit. The problem is that the increase in supply costs (higher taxes among other things) means a higher price is necessary and they do analyses on how high their price can go before people will not buy their product or service. People will buy a cheaper alternative or in some cases go without if the product or service is not essential.
Therefore, contrary to your statement, higher taxes NEVER encourage businesses to invest in expansion or start-up an enterprise, and I would like to see an opinion from an economist that believes that. Higher taxes are in fact counter-productive to economic growth, and that has been born out time and again in country after country. Where do you think investment capital comes from? It comes from profits; less profits means less investments. And THAT means less economic growth.