The effect of taxes on employment is a hotly debated economic and political issue. Some commentators claim that higher taxes lead to lower employment, by reducing the availability of capital to be invested in job-creating enterprises, or by reducing the amount of money available for consumers to use to purchase goods and services, thereby causing a loss of business for purveyors of those goods and services. Other commentators claim that higher taxes lead to higher employment, because governments use those tax revenues to employ government workers, who then purchase goods and services from private businesses, and because governments themselves may act as consumers of goods and services. Higher taxes have also been claimed to increase the confidence of outside investors in the stability of t