ECO 100 Final Paper Effects of taxes on the economy

1656 Words Oct 2nd, 2014 7 Pages
Effects of Taxes on the Economy
Donna Ralston
ECO 100 Survey of Contemporary Economic Issues
Instructor: Frank Huber
July 14, 2014

What happens to the economy when the government raises or lowers taxes? Lots of people in America do not understand exactly what happens to the economy when the government raises or lowers taxes. In this paper I am going to address that question as well as a few other things such as: Describing the effect on net personal income when the government raises taxes and when the government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes. I will also identify what other economic factors are affected when taxes are raised or
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When taxes are raised it makes it harder for the working people to afford things that they either need or want. When taxes are lowered then it makes things way easier for the working people to save money and be able to afford thing they either need or want. It’s particularly harder on single parents these days when taxes get raised. I am a single parent and I have to be very careful on what and how I spend my monies. I only get paid twice a month so every dime I make is stretched as far as it possibly can be. During the recession of 2008 I did not receive a pay raise, which; was very much needed for my kids and I. Thankfully we made it through the recession and I am very glad to see the economy gaining strength as we go.
In my own opinion the government should not increase taxes on everyone in order to equalize income and wealth. In a marketplace culture, the wealthy can only get wealthy by making revenue from the sale of merchandises and amenities manufactured with their possessions. In merging the influences of production to make them more treasured in the eyes of the multitudes, the "wealthy" are benefitting them not hurting them. Furthermore, if we ignore the rates of doing something, clearly anything will be favorable. What are the expenditures of trying to equalize income? Primarily you chastise industrious activity. In addition, you abolish

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