What Happens to Economy When Goverment Raises Taxes

Topics: Tax, Value added tax, Income Pages: 3 (1040 words) Published: June 24, 2013
What Happens to Economy when Government Raises Taxes?
Terry Burchett
ECO100
Survey of Contemporary Economic Issues
Ramzi Salloum
July 23, 2012

While should the government increases tax rate on everyone as a way to equalize incomes and wealth? It would make it easier for many people and make it fair for the poor and middle class citizens. Government officials that are elected are there to take care of policies and programs. Because when Gross Domestic Product( GPD) taxes increase spending and receipts rise and the government and the budget from surplus to a increase, when Gross Domestic Product taxes (GPD) reduce spending and receipts decline and the move of government budget from surplus toward a deficit. Therefore, elected officials are over seers of the policy's to make sure that the taxes stay fair for the people. (Brue, (2010).)

Even though should the government increases tax rate on everyone as a way to equalize incomes and wealth? It would make it easier for many people and make it fair for the poor and middle class citizens. Government officials, are chosen is there to take care of policies, and programs. Because when Gross Domestic Product (GPD) taxes increase spending and receipts rise and the government and the budget from surplus to a increase, when Gross Domestic Product (DPD) taxes reduce spending and receipts decline and the move of government budget from surplus toward a deficit. In addition, elected officials are over seers of the policy's to make sure that the taxes stay fair for the people. (Brue, (2010).) First, Government officials are selected are there to take care of policies and programs. For the reason that while, Gross Domestic Product (GPD) taxes increase, spending, receipts rise, the government, and the budget from surplus to an increase. (Brue, (2010).)

The idea of indirect taxes may seem a bit odd. Clearly, we pay income taxes, social security taxes, and state and federal taxes. However, we also indirectly pay...

Cited: Brue, S. L.-H. ((2010).). Essentials of economics (Ashford Custom 2nd ed.). In S. L. Brue. New York: Brue, S. L., & McConnell, C. R. (2010). Essentials of economics (Ashford Custom 2nd ed.). McGraw-Hill/Irwin.
business/economy/. (2011, 07 03). Retrieved from http://www.nytimes.com: http://www.nytimes.com/2011/07/03/business/economy/03view.html
Treberg, G. (2010, 11 29). Our Finite World. Retrieved from http://ourfiniteworld.com: http://ourfiniteworld.com/2010/11/29/is-it-possible-to-raise-taxes-enough-to-fund-stimulus-programs-what-does-the-oil-connection-say/
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