what are likely economic consequences of high income tax?
315206
The effect of tax cuts. Lower income tax rates increase the spending power of consumers and can increase aggregate demand, leading to higher economic growth (and possibly inflation). On the supply side, income tax cuts may also increase incentives to work – leading to higher productivity.
1472717
['Trade Barriers. Trade barriers such as tariffs can decrease margins or make it impossible to compete in a foreign market. ... ', 'Taxes. Changes in taxes can reduce the profitability of a business and affect the price of assets such as stocks. ... ', 'Legislation. ... ', 'Administration. ... ', 'Political Instability. ... ', 'Economics.']
1299122
Regressive taxes have a greater impact on lower-income individuals than the wealthy. ... They all pay the same tax rate, regardless of income. A progressive tax has more of a financial impact on higher-income individuals than on low-income earners.
1262665
If you don't repay the expected amount, then the government will treat the amount as income for that year and tax you on it. ... And depending on the amount owed annually, and the tax bracket you're in that year, it can mean paying several hundred dollars more in taxes that year. So, it can get costly.
1015431
['Negative or very low economic growth.', 'Rising unemployment.', 'Falling asset prices – shares and house prices.', 'Low confidence and falling investment. ... ', 'Rising spare capacity (negative output gap)']
886256
At a microeconomic level, inequality increases ill health and health spending and reduces the educational performance of the poor. These two factors lead to a reduction in the productive potential of the work force. At a macroeconomic level, inequality can be a brake on growth and can lead to instability.
104172
['High rates of growth per capita output and population.', 'High rates of increase in total factor of productivity (TFP); the ouput per unit of all inputs.', 'High rates of structural transformation of the economy.', 'High rates of Social, Political, and Ideological Transformation.', 'Propensity to trade.']
1322241
Major natural disasters can and do have severe negative short-run economic impacts. Disasters also appear to have adverse longer-term consequences for economic growth, development and poverty reduction. But, negative impacts are not inevitable. ... Reallocation is the primary fiscal response to disaster.
1187591
Deferring compensation and the taxes that go along with it can be an attractive proposition to many. For high income tax payers, the benefits from a delay in taxation needs to be balanced against a number of potential risks. A. Peter, with that much income, a deferred-compensation plan is definitely worth considering.
1188486
Socio-economic issues are factors that have negative influence on an individuals' economic activity including: lack of education, cultural and religious discrimination, overpopulation, unemployment and corruption.
907483
Excessive economic growth could be caused by a loosening of fiscal policy, at an inappropriate time. For example, if economic growth is already 2.5%, a cut in income tax would cause higher consumer spending leading to an economic boom. A loosening of fiscal policy would also cause a rise in government borrowing.
1045656
Though UBI makes for a good slogan, it is a poorly designed policy. Basic economic theory implies that taxes on income are distortionary inasmuch as they discourage work and investment.
1369995
What are the problems of high government borrowing? The potential problems of government borrowing include; higher debt interest payments, a need to raise taxes in the future, crowding out of the private sector and – in some cases – inflationary pressures.
361427
The cap limits how much high earners need to pay in Social Security taxes each year. Critics argue that income tax caps unfairly favor high earners compared to low-income earners. Others believe that raising the cap would result in one of the largest tax hikes of all-time.
200888
The most plausible explanation for income inequality's apparent effect on health and social problems is 'status anxiety'. This suggests that income inequality is harmful because it places people in a hierarchy that increases status competition and causes stress, which leads to poor health and other negative outcomes.
1413279
Regressive taxes have a greater impact on lower-income individuals than the wealthy. A proportional tax, also referred to as a flat tax, affects low-, middle-, and high-income earners relatively equally. ... A progressive tax has more of a financial impact on higher-income individuals than on low-income earners.
715994
So the citizens of a country with high GDP are likely to have high incomes and high standards of living and if GDP goes up a lot, people are likely to be earning and spending more and businesses are likely to be hiring and investing more.