how US tax rate affect US economy ?

Answer 1

the lower the tax, more support economic liquidity and atract investment and so the dolar is tend to raise
if it is higher, it means the gov is taking profit, and so the dolar tend to fall afterwards

Answer 2

As taxes are raised, local programs can paid for and expanded upon. Public safety, schools, libraries, government officals... etc. However, people are disuaded to buy because of the increased cost of living.

As taxes are lowered, people are more willing to buy things. This stimulates the economy so that businesses can thrive. When businesses thrive, their employee base (which is also the everyday consumer) are more willing to buy, thus rounding out the cycle. However, other factors also effect the economy. The economy may slumber, thereby reducing government funding. This leads to public programs suffering. For instance, teacher layoffs, public safety layoffs, reduced funding for government ran programs.