how do taxes affect the economy?

Question

what were to happen if taxes just were not paid anymore? would the economy crash? please help!!!!!

what if we stopped paying taxes? what services would be affected? would the economy boom or crash?

Answer 1

Taxes are theft from working people so that lazy, fat politicians can live in big mansions and drive fancy cars. Also, it gives them lots of cash to pass on to their friends and family.

Answer 2

Taxes have a negative effect on the economy. Because they divert wealth away from the productive private sector into the non-productive public sector. Just look at welfare programs, if all the money spent on welfare programs was just handed out to the poor there would be no poor people. The problem is that a good portion of the money spent is syphoned off by government employees to pay their salaries and benefits.

No matter how inefficient government is there are functions that only the government can do. Such as running the court systems and enforcing law. So a minimum level of taxation is necessary to provide the level of security and order necessary for economic activity.

Answer 3

There is no situation, whereby taxes are not at all paid. There are honest citizens interested in the welfare of state, everywhere. They will be definitely paying taxes. But the percentage of those people is very very less. Therefore, salaried people are compulsorily taxed.

When the state goes on increasing tax, even honest citizen will hesitate to pay tax. In that situation, economy will crumble

Answer 4

There would be a boom time for the economy, then we would have rapid inflation. The gov would seize to exist.

Answer 5

taxes are for like to fix roads and for schools and fix around the nabor hood and stuff like that