How does taxation effect individual and business in terms of income and investment answer
Answer (1)
For IndividualsIncome - Taxes reduce disposable income. Higher income tax means individuals have less money to spend or save.Investment - High taxes on interest, dividends, or capital gains may discourage personal investments.For BusinessesIncome - Taxes reduce profits. This can limit a company’s ability to reinvest in growth or pay dividends to shareholders.Investment - High corporate taxes may discourage business investment in equipment, innovation, or expansion due to reduced after-tax returns.
