In the Final Paper, you will consider the economic question of taxes and how they affect the economy. What happens to the economy when the government raises or lowers taxes? In answering the question, it is important to look at the topic from an economic perspective rather than a political one, and to be sure to use the knowledge you have gained in this class in formulating your response. Three resources obtained from outside research will be required to support your points, including a minimum of two from the databases available at the Ashford University Library. Include a response to the following questions when formulating your argument:
What happens to net personal income when the government raises taxes? When the government lowers taxes?
How is GDP affected by higher taxes? Lower taxes?
What other economic factors are affected when taxes are raised or lowered, and how are they affected?
Should the government increase tax rates on everyone as a way to equalize incomes and wealth?
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