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Usimov [2.4K]
3 years ago
12

What role do federal taxes play in our economy?

History
2 answers:
kumpel [21]3 years ago
8 0

Explanation:

Primarily through their impact on demand. Tax cuts boost demand by increasing disposable income and by encouraging businesses to hire and invest more. Tax increases do the reverse. These demand effects can be substantial when the economy is weak but smaller when it is operating near capacity.

umka2103 [35]3 years ago
3 0
Primarily through their impact on demand. Tax cuts boost demand by increasing disposable income and by encouraging businesses to hire and invest more. Tax increases do the reverse. These demand effects can be substantial when the economy is weak but smaller when it is operating near capacity.
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