Lets take this a bit further . Say a company pays 30% tax and has a tax bill of $30 million.
Tony says " i will reduce your tax rate by 1.5% so now you only pay $28.5 million" . Huzzah ! The people cry.
Now The Government spends the $28.5 m on stuff like schools, and new Joint strike fighers . So because they will still pay the same for the JSF's ( or Howards folly as it is really known) then they will have less to spend on schools , or health or whatever, so the people go BOO!
Then the government says "we want well paid women to get full wages when they have kids and all you companies now must pay us $1.5 million more!" So some of the people say Huzzah and some say Boo!
But we end up with less spent on schools, the same amount of JSF's and a new amount for well paid women to have kids.
So the money went from schools to the Pay upper North shore women to have babies!