ECO 100 Final Paper Effects of taxes on the economy
Effects of Taxes on the Economy
Donna Ralston
ECO 100 Survey of Contemporary Economic Issues
Instructor: Frank Huber
July 14, 2014
What happens to the economy when the government raises or lowers taxes? Lots of people in America do not understand exactly what happens to the economy when the government raises or lowers taxes. In this paper I am going to address that question as well as a few other things such as: Describing the effect on net personal income when the government raises taxes and when the government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes. I will also identify what other economic factors are affected when taxes are raised or lowered, and explain the results of these changes. And finally I will explain why in my own opinion the government should or should not increase taxes on everyone in order to equalize income and wealth. First of all, taxes are necessary in order to strongly manage and reserve different governmental organizations. Numerous supporters of taxes propose that taxation is way too punishing in the present day of monetary tendencies that occur in America. Taxes help to reserve lots of programs and creation of certain developments in America, but taxes also have an affect on certain aspects of America's economy. Taxes can have positive and negative features in a monetary structure. Increasing taxes does have an unswerving consequence towards customers, corporations, and the general economy.
Patrons are unprotected to risky effects of taxes, and could be affected more so than other individuals contained by the economy. Snowballing fees on their merchandises due to the enlarged taxes makes up most of the possible revenues for companies. The customers consequently lose out due to the amplified costs, and must choose an additional fiscal scrutiny. An example would be a customer that is introduced to new taxes might resolve to discontinue buying
Donna Ralston
ECO 100 Survey of Contemporary Economic Issues
Instructor: Frank Huber
July 14, 2014
What happens to the economy when the government raises or lowers taxes? Lots of people in America do not understand exactly what happens to the economy when the government raises or lowers taxes. In this paper I am going to address that question as well as a few other things such as: Describing the effect on net personal income when the government raises taxes and when the government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes. I will also identify what other economic factors are affected when taxes are raised or lowered, and explain the results of these changes. And finally I will explain why in my own opinion the government should or should not increase taxes on everyone in order to equalize income and wealth. First of all, taxes are necessary in order to strongly manage and reserve different governmental organizations. Numerous supporters of taxes propose that taxation is way too punishing in the present day of monetary tendencies that occur in America. Taxes help to reserve lots of programs and creation of certain developments in America, but taxes also have an affect on certain aspects of America's economy. Taxes can have positive and negative features in a monetary structure. Increasing taxes does have an unswerving consequence towards customers, corporations, and the general economy.
Patrons are unprotected to risky effects of taxes, and could be affected more so than other individuals contained by the economy. Snowballing fees on their merchandises due to the enlarged taxes makes up most of the possible revenues for companies. The customers consequently lose out due to the amplified costs, and must choose an additional fiscal scrutiny. An example would be a customer that is introduced to new taxes might resolve to discontinue buying