Reduction in Taxes and its Impact on the Economy
Question
Discuss whether or not a reduction in taxes is beneficial for an economy.
Category:
Taxes and subsidies
Frequently asked question
Preview Answer
I. 🍃Introduction
- Brief explanation of the topic
- Thesis statement
II. Advantages of tax reduction
- Reduction in taxes attracts investments
- Creation of new jobs
- Improvement in productivity of the economy
- Investments in R&D/technology
- Creation of economic growth
- Increase in disposable income
- Increase in total demand
- Lower unemployment
- Reduction in costs of production
- Improvement in product quality
III. Disadvantages of tax reduction
- Decreased government revenue
- Budget deficit
- Inability to spend on infrastructure
- Opportunity cost
- Increase in the value of currency
- Uncompetitive exports
- Increase in consumption of harmful products
- Reduction in people's health
- Infant industries going out of business
- Increase in unemployment
- Inflation
IV. Analysis of the advantages and disadvantages
- Comparison of the advantages and disadvantages
- Explanation of the impact on the economy
V. 👉Conclusion
- Restatement of thesis statement
- Summary of the advantages and disadvantages
- Final thoughts on the topic
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