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
Personal net income-wen government increase tax, spending will reduce, when it decreases, spending will increase. National income increases when government increases tax also execution of government capital projects e.g roads will be rapid. It all depends on what the government intends to make out from tax increase or decrease.