Taxation and Economic Growth

Taxation involves governments collecting money from individuals and businesses to fund public services like education, healthcare, and infrastructure. Economic growth refers to an increase in a country’s production of goods and services, which often leads to higher incomes and improved living standards. While taxes provide essential funding, high or poorly managed taxes can discourage investment and work, potentially slowing growth. Conversely, well-designed tax policies can support growth by funding productive public initiatives and ensuring fair contribution. Striking the right balance is key to fostering a healthy economy that benefits society as a whole.