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Explain the effects of taxation on the ability to work and save.

      

Explain the effects of taxation on the ability to work and save.

  

Answers


Francis
-People become willing to save less than before.
-people may be induced to work less since they think of paying less tax by earning less.
-Once the demand for income becomes inelastic the imposition of a tax will increase people’s desire to work and save.
-Desire to work or save is decreased if the demand is elastic.
-Ambition of becoming rich and wealthy for attaining social status may also increase the ability to work and save.
franco crick answered the question on March 3, 2018 at 07:58


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