Local businesses would most likely oppose the proposed tax increase because new taxes could

New Taxes will increase the cost of doing business. This will result to increasing the prices of their products just to serve the customers and to maintain the equilibrium where the supply must meet the demand of the people to avoid any shortage of stocks.

New Taxes will increase the cost of doing business and eventually increase the prices of goods and services they provide to their customers.

A business might try to hold and not pass on the increasing costs to their customers, but for a small local businesses, this becomes very difficult.

When they do have to increase prices, sales drop as fewer people are willing to pay higher sums for the same work. Profits start to drop and customers might seek alternatives.

Long-term impacts include, businesses declaring bankruptcies, unemployment rising, and people moving outside the area for better opportunities.