Sneakers41- I also want to say that when taxes are raised businesses tend to hire less. If businesses hire less, the economic employment goes down which results in a high unemployment rate.
Income employment and economic growth are related. When incomes go up people tend to spend more money which spurs economic growth.
Businesses are more successful and expand and provide more jobs as people purchase more things.
It is like a cycle that continues as long as the market economic conditions remain positive.
The flipside could be said when taxes are raised. For example, in the mid-to-late 70s when Jimmie Carter was president, the top tax rate was 70%. There was also double digit unemployment.
However, when President Reagan took office, he dropped the top tax rate to 28% and as a result, American disposable income grew 15%. This also created 20 million jobs and cut interest rates in half. Economic employment works best with supply side economic policy.