tax decrease

Why Does The Government Raise Taxes?

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Why Does The Government Raise Taxes? To dampen economic growth and inflationary pressure, the government can increase taxes and keep spending constant, or decrease spending and keep taxes constant. To stimulate growth and reduce unemployment, the government can decrease taxes and keep spending constant, or increase spending and keep taxes constant. Why a government might

Why Are Some Taxes Considered To Be Regressive Chapter 14?

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Why Are Some Taxes Considered To Be Regressive Chapter 14? Explain to students that sales taxes are considered regressive because they take a larger percentage of income from low-income taxpayers than from high-income taxpayers. To make such taxes less regressive, many states exempt basic necessities such as food from the sales tax. Why are some