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When they raise taxes, people and businesses are required to pay more into the government. By raising taxes, it takes money out of peoples pockets and therefore they and businesses have less to invest. Investment is what drives the economy. Businesses cannot expand, they don't hire people to work, businesses shrink, people are put out of work and the economy as a whole shrinks.
What else can I help you with?
How does the Chinese government raise money?
The Chinese government raises money by levying taxes. It also raised money by charging tariffs on imported goods and selling arms and weapons to other countries.
What happens if you overpay quarterly taxes?
If you overpay your quarterly taxes, you will receive a refund from the government for the excess amount you paid. This refund can be applied to future tax payments or deposited into your bank account.
What happens if you overpay estimated taxes?
If you overpay estimated taxes, you will receive a refund from the government for the excess amount you paid. This refund can be applied to future tax payments or returned to you as a check or direct deposit.
What happens if no federal taxes are taken out of my paycheck?
If no federal taxes are taken out of your paycheck, you may owe a large amount of money to the government when you file your tax return. It is important to ensure that the correct amount of taxes are withheld from your paycheck to avoid penalties and interest.
Largest source of revenue for the federal government?
The largest source of revenue for the federal government has been individual income taxes and payroll taxes. These taxes account for 82% of all federal government income.
When the government raises taxes what happens to the total output?
falls, because the goverment is able to reduce the defict
Is a government that is elected by the people raises taxes a legitimate or illegitimate?
Legitimate,becausethepeopleelected the government.
How is government funded and raises money?
through taxes and borrowing from other countries
If their is high inflation and the federal government spends less and raises taxes the government is utilizing what?
fiscal policy
What is the chief way the federal government raises revenue?
Individual income taxes. @DJSCREAM21
What If the government raises taxes and everything else remains constant?
comsumer will have less money to spend
What happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services?
true A+
If the government raises everyone's taxes consumers have less money or income to spend on consumer goods and services.?
true A+
What happens to taxes when the government increases spending?
they go up
What happens to net personal income when the government raises taxes?
Generally if your gross income stays the same and the government raises taxes, it decreases your net personal income. On the macro scale, as government raises taxes, most people's net personal income decreases, which means their disposable income also decreases. Since their disposable income decreases, they spend less (unless they want to just get deeper in debt), which further decreases the gross income of those they buy goods and services from with their disposable income. This can actually lead to a decrease in total tax revenue as the gross incomes of the population can drop a greater percentage than the increased percentage of the taxes; 40% of $80,000 is only $32,000 while 35% of $100,000 is $35,000.
Identify the several different taxes by which the Federal Government raises revenue?
The Income Tax. The Corporation Income Tax. Social Insurance Income Tax. Excise Taxes. Estate and Gift Taxes. Customs Duties.
