I stumbled upon an amusing Reuters video about France's decision to cut sales tax for restaurants. It shows restaurant workers expressing delight that -- surprise! -- lower taxes have helped their business. Here's the short clip:



The clip explains:

Value added tax (sales tax) will fall to 5.5% from 19.6%.



That's a drastic cut, and it shows. Customers are coming more often and ordering more food. Restaurants are planning on hiring more people.

Perhaps France is getting a glimpse of what lower taxes can do. This is basic economics, but it's nice to see theory in action. I hope this lesson -- that lower taxes for business create jobs, increase revenue and provide consumers with greater purchasing power -- is noted there and abroad.

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