Question

How can business taxes positively affect an economy? If taxes are low, more businesses can be created. If taxes are low, then businesses will give more of their earnings away. If taxes are high, then businesses can create multinational corporations. If taxes are high, then businesses can create monopolies.

Answer 1

The correct option is this: IF TAXES ARE LOW, MORE BUSINESSES CAN BE CREATED.
There are many strategies which the government of a nation can employ to encourage investors to create more businesses in a country. These type of strategies include reducing the amount of money that is collected as tax from business owners. This will encourage more people to go into business because, the situation will allow them to still make tangible profits after their taxes have been paid; this will generally encourage the growth of the economy.