Answer :

The said effect of an increase in corporate taxes on an economy is known to be attached in the image shown.

What is the effect of tax increase in the economy?

By the act of raising the cost of capital, there is found to be a higher form of corporate income tax that lowers the investment and economic growth.

Note that by lowering the rate of capital investment, a higher corporate income tax tends to lower the long-term productivity growth, and also reduce the productivity means via low wages.

Note that that tax increases is one that can bring about increased revenue for government  and also The said effect of an increase in corporate taxes on an economy is known to be attached in the image shown.

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