Mr. Shannon is a dentist in a prosperous clinic in his hometown. During the past year or two the state in which Mr. Shannon lives has been raising taxes on its businesses. What effect is this likely to have on Mr. Shannon's job?

• Mr. Shannon's clinic may consider moving to a lower-tax state, threatening Mr. Shannon's job.
• Higher business taxes cannot have any effect on Mr. Shannon's job.
• Mr. Shannon is likely to get a large raise to offset the effect of the higher taxes.
• Higher business taxes will cause more businesses to move into Mr. Shannon's state, raising wages.