How large is the effect of a tax break on the economy?
a) it depends on whether it is a permanent or temporary decrease in taxes
b) tax breaks of the same dollar amount will always decrease GDP by the same dollar amount
c) tax breaks have no effect on economy
d) tax breaks of the same dollar amount will always increase GDP by the same dollar amount
e) it depends on people's perceptions of whether it is a permanent or temporary decrease in taxes

Question

18-09-2022
Social Studies

Answered

How large is the effect of a tax break on the economy?
a) it depends on whether it is a permanent or temporary decrease in taxes
b) tax breaks of the same dollar amount will always decrease GDP by the same dollar amount
c) tax breaks have no effect on economy
d) tax breaks of the same dollar amount will always increase GDP by the same dollar amount
e) it depends on people's perceptions of whether it is a permanent or temporary decrease in taxes

Answer :

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AnnuG AnnuG · Answer 1 · 2022-09-22T07:44:40-04:00

Option (d) tax breaks of the same dollar amount will always increase GDP by the same dollar amount, is the effect of a tax break on the economy.

The term tax breaks refers to a benefit the govt offers that reduces your total liabilities. Tax breaks are made possible by tax laws and typically are available in the shape of credits and deductions. Other tax breaks include exemptions and excluding certain kinds of income from your state or federal official document.

Tax breaks like credits and deductions lower your total liabilities.

Tax breaks are the merchandise of tax laws designed to strengthen the economy or promote specific policy goals.

A tax breaks can also be called as tax writes-off could be a tax write-off, credit, exemption, or exclusion that helps individuals and businesses economize on their tax bills.

To know more about Tax breaks here

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