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Only indirectly. If a business can profit more from investing than it can from sitting the money in the bank, then it will regardless of the taxes. Higher taxes
by forinti 18y ago
Only indirectly. If a business can profit more from investing than it can from sitting the money in the bank, then it will regardless of the taxes. Higher taxes will lower consumption and raise costs, but they won't deter investment by themselves, otherwise nobody would start businesses in Sweden or Belgium.
- nazgulnarsil 18y agoright, taxes are just changing the equilibrium point.