Originally posted on 07/15/2014:
I'm sorry man but that's just pure fallacy from beginning to end. You're acting like the business owner has no idea how to run a business and needs the gov't to force him to run it correctly. If the best thing to do with that money is reinvest it in that business, the owner already has an incentive to do that, and the higher taxes does the business no good. If the economy is best served by putting the money in another place, the owner has a reason to not do that, and the economy becomes more inefficient.