Question

explain+negative+impact+of+high+tax

Answer 1

Answer:

the negative impact of high tax of example on the firm it result in increase cost of production and the firm will reduce the size of production in order to cover costs

the firm may also unemploy some works in order to cover the production costs and this can result in increased rate of unemployment and this can lead to increase in crime rates and prostitution by individuals in order to rise income for survival

high tax may also scare away investors leading to low investment in a country and a low rate of economic growth in an country

high tax may also cause voluntary unemployment since it will not benefit an individual to work since the income will be collected by the taxes

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