Essay on What Happens to Economy When Goverment Raises Taxes

1043 Words Sep 2nd, 2013 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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Even if we contribute, say to a church, part of that contribution will go to pay the taxes of the employees of the church.
The figures I show are for the US. I expect that the European countries with all of the current debt problems would likely have similar or worse values, if calculations were done for them.
I think the way GDP is calculated today misses many of the linkages as to what is really happening. I know my model is not exactly right–but I hope it gives some insight as to what is really happening, as oil prices and the credit markets interact to affect the economy.
As I look at this model, one question comes up: “What if a similar oil price run-up occurs again, followed by more recession, and even more reduction in lending?” Governments are already spending far more than they take in. The high spending already in place, and the large gap between revenue and expenditures, makes it clear that there is not much room for a repeat stimulus program. The next time around could be much worse! (Treberg, 2010)

Additionally, when Gross Domestic Product taxes reduce spending and receipts decline and the move of government budget from surplus toward a deficit.
Generally, if the average person gross income stays the same and the government raises taxes, it…