Taxes can affect both supply and demand factors.
By influencing incentives, taxes can affect both supply and demand factors. Taxes help the government fund their projects for economic development. It's also the lifeblood of outstanding government employees, like teachers.
Contributing your share of the pie greatly helps in the development of the Philippines as a whole. The higher the tax rate, the more capital is taken out of the hands of the entrepreneur and into the hands of the government.
Therefore, theory holds that higher tax rates leave entrepreneurs with less money to reinvest in their businesses, leading to less job creation.
Explanation:
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