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What happens when the government raises taxes or decreases taxes?
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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.
When the government raises taxes what happens to the total output?
falls, because the goverment is able to reduce the defict
What happens to net personal income when the government lowers taxes?
your net income increases, but your income tax decreases
What happens to net personal income when government lowers taxes?
your net income increases, but your income tax decreases
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
Do property taxes changes when home value decreases?
No. Property taxes do not change when home value decreases. You need to go to the tax collectors office or equivalent and have the value of your property assessment decreased. The government is quick to raise it. The government is in no hurry to decrease it and have you pay lower taxes.
What happens when the government raises taxes?
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 happens to a net personal income with the government lowers taxes?
If the government lowers your taxes your NET income increases.
