So just because taxes can discourage productive behavior doesn't mean that they do.
But even in isolated cases, the evidence that taxes discourage growth can be thin.
At what point, for example, do higher taxes imposed on the rich discourage people from trying to get rich?
High taxes discourage potential entrepreneurs from taking the risk of starting a new business in the first place.
But critics who say such a tax discourages investment in exploration and drilling have a point.
They said that the increased sales taxes would drive shoppers to other states or discourage businesses from putting their headquarters in the city.
Without that cut, the tax on the package may discourage some investors, said a futures trader at an American firm here.
Both Governors indicated they were concerned that the higher taxes would discourage companies from locating in their states.
And, many conservatives argue, higher taxes discourage business investment.
A very heavy tax might discourage too, much this attention and good management.