Taxes – progressive taxation systems increase the amount of money that can be spent, which increases demand for capital, and regressive taxation increases the amount of money that goes into supply of capital. The “middle class” is an interesting phenomenon here, as individuals in the middle class both consume, and contribute investment capital – meaning that taxation that discourages the growth of a middle class would probably not significantly affect this relationship, but would reasonably slow an economy nonetheless by reducing both supply of and demand for
