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Taxes really don't stimulate the economy as well as the private sector. Obviously if you are spending someone else's money, you wouldn't spend it as efficiently or as productively as if you yourself were spending your money. This is a highly debateable topic, so not everyone will agree, but from all the evidence I can see, in general higher taxes hinder economic growth.

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Q: How do local federal and state taxes support the economy?
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How do education program make the economy more productive?

Education programs add to the nation's human capital and labor productivity. Improved education and technology can make an entire economy more productive by shifting the production possibilities frontier outward. Federal, state, and local government all provide educational opportunities to the poor. The Federal government funds programs from preschool to college. State and local programs aid students with learning disabilities. By adding to the human capital and labor productivity.


What does the word economy mean?

the system of producing and consuming goods in a country, state, or local area


What can be said about the current economy and government of Latin America?

Latin America is a region composed of many countries. As such, each individual country has a different kind of government and economy. Some examples include:Mexico: Federal Republic; Export-oriented economyCuba: Communist State; tourism-oriented economyBrazil: Federal Republic; resource-oriented economy


What role does the reserve bank play in the economy?

The federal reserve bank plays an important roll with (de)/(in)flation, housing the IRS and Treasuries money. When money is granted to a state by the federal government, the money is handed out by the Federal Reserves in the state in which the money was granted.


Difference between federal taxes and state taxes?

The United States has several levels of government. The main national government that has jurisdiction over the entire country is known as the federal government. Most of the United States is divided into smaller political subdivisions called "states." Examples of states are Florida, California, and Hawaii. These states have their own governments that have jurisdiction over local matters within their boundaries. (The United States also has several territories not located within states that do not have all of the rights of states, but do have their own governments. Examples are the District of Columbia where the federal capital is located, Puerto Rico, and Guam.) A tax imposed by action of the federal government is called a federal tax. A tax imposed by action of a state government is called a state tax.

Related questions

How did world war 1 help South Carolina's economy?

World War I brought facilities into the state. Facilities brought federal dollars into the state and stimulated the local economy.


Can child support garnish a lawsuit from another state?

Yes. They can intercept any and all wages be it federal,local or state.


Do the DSCA provide federal assistance for local and state authorities who are overwhelmed by major incidents?

Defense support of civil authorities


When local and state authorities are overwhelmed by major incidents what programs can they use to request federal assistance?

Defense support of Civil Authoritie


Who is in chrge of protecting wildlife state federal or local government?

Who is in charge of protecting wildlife state, federal or local government?


What does federal supremacy mean?

Federal supremacy establishes that federal law supercedes all state and local law. Federal supremacy establishes that federal law supercedes all state and local law.


How does the federal government support the state governments?

By giving federal grant


why federal or state government checkmate the local government?

federal government


Do they garnish both state and federal taxes for back child support?

If you owe back child support then both state and federal taxes can be intercepted.


How do state constitution control the economy?

State constitutions control the economy because they decide how to raise and spend taxes, and that is how state constitutions control certain aspects of the economy.


What creates local government?

The State Government Creates the Local govt. The Federal creates The State!


What are the three levels of the law enforcement?

The three levels of Law Enforcement are - Federal Bureau of Investigation (FBI), State and Local