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Who can increase or decrease taxes?

Updated: 9/23/2023
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Q: Who can increase or decrease taxes?
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Related questions

Why does an increase in autonomous taxes have the same effect on equilibrium output as does an decrease in autonomous transfers?

taxes indirectly decrease Y, it does this by decreasing consumption


Does legislative or executive or judicial go with increase decrease taxes?

yes


Do income taxes increase or decrease your gross pay?

Decrease. The tax is taken OUT of the gross leaving a net.


When would an increase in government purchases be an appropriate countercyclical fiscal policy?

A decrease in government spending and increase in taxes.


An example of contractionary fiscal policy would be?

A decrease in government spending and increase in taxes


What committee in the house of representatives decided whether to increase or decrease taxes?

Ways and Means


When taxes decrease what does consumption do?

When taxes decrease, consumption


How can federal government affect fiscal policy?

Generally speaking the fiscal policies of the US Federal government are related to the monetary policies of the US Federal Reserve System. With that said, US fiscal policies of the Federal government can affect the economic situation of the US. The Federal government can do the following to influence the US economy, all of which are meant to improve the economy, however, that may not be the intended result. Here are some but not all examples of how the economy of the US can be affected by the Federal government:* Increase or decrease income taxes on personal and corporate income;* Increase or decrease gasoline taxes;* Increase or decrease tariffs;* Increase or decrease capital gains taxes ( part of income taxation );* Increase or decrease social security payments;* increase or decrease certain Medicare prices (costs )* increase or decrease Federal employment policies;* increase or decrease social spending in terms of food stamps as an example; and* Increase or maintain current levels of the national debt ceiling.


How is fiscal policy controlled?

Taxes, and government spending. Increasing taxes will decrease consumption and supply. Lowering taxes will increase consumption and supply. Increasing government spending will increase national consumption, and decreasing government spending will decrease national consumption. The economics AD-AS model shows a visual representation of the effects of fiscal policy on the economy if you are further interested.


Do Keynesian economist believe that the economy is self regulating?

No, they regulate the economy by doing 2 things: 1)increasing government spending and decrease taxes to fight recession 2) decrease government spending and increase taxes to fight inflation.


What are the two ways the federal government could respond to an increase in the economy?

raise income taxes and decrease government spending


How can taxes and subsidies effect in supply?

Taxes can decrease the supply when they are raised and increase the supply when they are lowered. Subsidies, on the other hand, can raise the supply when raised and lower the supply when they are lowered.