State FOUR economic effects of taxation to a country's economy.

Answers

- It can lead to reduction in foreign capital
- It can lead to reduction of consumption as disposable income is reduced
- It can discourage saving by individuals and companies
- Some types of taxes may lead to inequality in the distribution of income and wealth
- Heavy taxes may affect peoples morale to work for monthly wages.

sharon kalunda answered the question on September 4, 2019 at 11:24

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