Yes taxes affect the policy by increasing or decreasing the amount of income the government receives.
The person is in the first stage of Seyle's stress hypothesis known as "alarm". In this state the body is preparing for the stressor that they have come across or encountered. The parasympathetic nervous system is activated and the body is in a "fight or flight" mode. Hormones (cortisol and adrenaline) are released into the body to help the body fight the stressor.
