What Happens to Economy When Goverment Raises Taxes

1030 words 5 pages
What Happens to Economy when Government Raises Taxes?
Terry Burchett
ECO100
Survey of Contemporary Economic Issues
Ramzi Salloum
July 23, 2012

While should the government increases tax rate on everyone as a way to equalize incomes and wealth? It would make it easier for many people and make it fair for the poor and middle class citizens. Government officials that are elected are there to take care of policies and programs. Because when Gross Domestic Product( GPD) taxes increase spending and receipts rise and the government and the budget from surplus to a increase, when Gross Domestic Product taxes (GPD) reduce spending and receipts decline and the move of government budget from surplus toward a deficit. Therefore, elected
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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.

Finally, the most important reason Government officials are elected are there to take care of policies and programs. Is Elected officials are over seers of the policy's to make sure that the taxes stay fair for the people. All of this argues against any form of fiscal austerity just now. Even some deficit hawks warn that immediate tax increases or spending cuts could push the economy back into recession. Far better to pass a plan that phases in spending cuts or tax increases over time.

(business/economy/, 2011)

Indeed, while should the government increases tax rate on everyone as a way to equalize incomes and wealth? It would make it easier for many people and make it fair for the poor and middle class citizens, Government officials are elected are there to take care of policies and programs.
My concern is if we continue to raise taxes how do we get out of debt and why do the government and polices, they make help them and not the

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