Based on your reading of the following, choose best answer to the question.
State A began cutting its budget in 2008 because of the recession. The result was that spending for public schools was cut by a significant amount, and student class size went up. Meanwhile, tuition in public universities also increased. The state used the extra money created by the cuts in education to balance the budget. Liberals argued that the state should raise taxes to cover the shortfalls, rather than cut programs. Which of the following would not likely be an argument advanced by fiscal conservatives?

That increasing taxes is bad for the economy, because businesses cut staff when taxed more.
That increasing taxes is bad for morale, because it encourages people’s dependence on government.
That increasing taxes is bad for education, because people will have less money to attend college.
That increasing taxes is bad for the economy, because consumers spend less money when taxed more.