Economy, asked by sensona850, 1 year ago

what is the effect of tax on investment​

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Answered by Anonymous
2

Since rich people save more than the poor, progressive rate of taxation reduces savings potentiality. This means low level of investment. Lower rate of investment has a dampening effect on economic growth of a country. Thus, on the whole, taxes have the disincentive effect on the ability to work, save and invest.

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