April 10, 2023

What is the relationship between taxes and economic growth?

Taxes play an important role in economic growth. They provide governments with a source of revenue to fund public services, infrastructure, and other investments that are essential for economic growth. By incentivizing businesses to invest, taxes can also help create jobs and spur innovation. At the same time, taxes can also act as a brake on economic growth if they are too high, as they can discourage businesses from investing and hiring new employees. As such, getting the balance right between taxes and economic growth is essential for long-term prosperity.