The 7-year taxation policy decision had as its goal increasing government revenue through higher import and general income taxes. My term began with a spending rate of 30 and a consumption rate of 55. These rates have steadily increased during my term, which indicates that people are able to spend enough while the government does not tax them too much. A head tax is a tax that applies equally to all people, which was my macroeconomic decision. Because of the high unemployment rate in the country, this concept is the best and most effective.
Investment and consumption are affected by changes in income tax rates and corporate tax rates. Many modifications were made to reflect an increase in income tax. A minor rise in the income tax resulted in a significant increase of the available government resources. Therefore, government spending increased due to the increase in resources. For a number of reasons, it was needed to reduce the corporation tax. A reduced tax initially allows investors to grow their operations. This results in increased demand for workers, and an increase of employment. This increases purchasing power, and allows for more consumption. This tax system is also investor-friendly. It allows for increased investment in order to meet the growing demand.
The effects of President Donald Trump’s tax policy on the United States between 2017 and 2019 are strikingly similar. The market saw a rise of the gross domestic product initially, possibly due to President Trump’s attempts to encourage local production. The market saw an increase in employment rates due to increased economic output and investments. Both markets also saw an increase in government spending due to increased income taxes. Inflation is a problem in both of these models due to increased liquidity on the markets and an increase in the employment rate. Manufacturers are forced to raise prices as a way to cover the cost of recruiting workers, and maintain balance between supply and demand.