How taxes support the economy? write two sentences or more. Use ur own words

Tax cuts boost demand by increasing disposable income and by encouraging businesses to hire and invest more.

Tax increases do the reverse. These demand effects can be substantial when the economy is weak but smaller when it is operating near capacity.

Explanation:

How do taxes affect the economy in the long run? High marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources. But tax cuts can also slow long-run economic growth by increasing deficits

what are the statements

there are indirect ways of affecting state laws   by with holding funding's. and that's why we have a 55mph speed on the high way with a design of 70mph speed.