Question

How can business taxes positively affect an economy?

A If taxes are low, more businesses can be created.
B If taxes are low, then businesses will give more of their earnings away.
C If taxes are high, then businesses can create multinational corporations.
D If taxes are high, then businesses can create monopolies.

Answer 1

D. If taxes are high then businesses can create monopolies

Answer 2

If taxes are low more businesses can be created ( A )

Step-by-step explanation:

business taxes are good for the economy in several ways because they help the economy to take on projects like electrification, road constructions and avoiding excessive borrowing by the Government. while higher taxes might benefit the economy, it will as well harm it because it will reduce rate of investment and work from firms and also employees of labor. the creation of Monopolies doesn't rely mostly on taxes cuts or hikes.

lower taxes increases take home pay and also increase businesses profit after tax hence enabling the creation of more businesses