high taxation

High taxation refers to the government collecting a large portion of individuals’ or businesses’ income or profits through taxes. This can impact economic activity by reducing disposable income, potentially discouraging investment and work effort. While taxes fund essential public services like healthcare, education, and infrastructure, excessively high rates may also lead to tax evasion or reduced economic growth. Finding a balance is key: taxes should generate necessary revenue without overly burdening taxpayers or constraining economic incentives.