0
It leaves more money for consumers to spend, making more jobs for suppliers of goods and services, which makes more jobs for more people to spend more money. That way, the government can make more money because more people are paying more taxes. If government RAISES taxes, the consumer ultimately looses.
Imagine taxes based on a continuum. If taxes are zero, the government gets no taxes. If taxes are 100%, taxpayers quit working and the government gets zero again. Somewhere along the line is a place on the continuum where the government gets the maximum that it needs to operate and taxpayers get to keep the most possible. Raising taxes doesn't always result in more money to the government. Sometimes, by taking too much money out of the taxpayers pockets the government AND THE TAXPAYERS loose.
Wiki User
∙ 11y ago
Wiki User
∙ 14y agoLower taxes means that businesses have more money to expand the business including hiring new staff and increasing spending on new projects.
Lower taxes also mean that consumers are able to buy more expensive goods because they have more disposable income.
The price of Exported goods and services would be less expensive, which makes them more competitive and businesses abroad will see and increase in sales and profit.
Add your answer:
Earn +20 pts
Did JFK lower taxes?
He proposed lower taxes as a way to stimulate the economy
What would happened if taxes were lower?
If taxes were lower, businesses and consumers would spend and invest their extra money, causing the economy to grow.
How would the US government most likely react to a slump in the economy?
Lower taxes to make it easier for consumers and businesses to spend money.
What does Mitt Romney's plan to do with the economy?
He plans to lower taxes like a good president would do. I don't understand why all you people are biased against him. *sigh*
How do you provides taxes to economy?
how do provides taxes to economy
When would the government step in and spend more Revenue and or lower taxes to stimulate demand?
They would do this when the economy is weak.
When would the government step in and spend more revenue and lower taxes to stimulate demand?
They would do this when the economy is weak.
In periods of recession the president and congress should raise or lower taxes?
Republicans will lower taxes making more money available for the private sector to provide products and services.Democrats will raise taxes and try to stimulate the economy through government spending and social programs.
How is Brazil's economy viewed?
High Taxes , High Especulate MArket , (Stock MArkert), Good Opportunity
What were taxes like in the dark ages?
Economy in the dark ages was terrible. Warriors were sacking cities, and there were too many wars going on for a good economy or a good idea to come out of that time period.
How Did Julius Caesar lower taxes?
Yes, Julius Caesar did lower taxes.
What ways does the government uses taxes and spending to stabilize the economy?
Taxes are a needed evil. They NEVER help an economy. They can prevent one from growing. They can be used to slow an economy. Taxes hurt the people that pay them. A over taxed economy fails. A heavily taxed economy slows to stagnation. If you want to kill an economy and change the direction of a country, step one is tax it to death.
