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Levying taxes transfers money from the taxpayer to the government.
The only difference is that now the money will be spent by government rather than by the taxpayer. Government will choose where to spend the money rather than the tax payer.
The only impact on the economy is the multiplier effect: is it larger because of where the government spends the money or would it have been larger if the taxpayer had been allowed to spend it? It depends on where the money is spent.
Taxes do not increase or decrease the money supply,so are neither deflationary nor inflationary.
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Baby Boomer Demographics: The Shift Ahead [View article]
The only difference is that now the money will be spent by government rather than by the taxpayer. Government will choose where to spend the money rather than the tax payer.
The only impact on the economy is the multiplier effect: is it larger because of where the government spends the money or would it have been larger if the taxpayer had been allowed to spend it? It depends on where the money is spent.
Taxes do not increase or decrease the money supply,so are neither deflationary nor inflationary.
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