Tax Policy

Tax policy is the manner in which the government generates revenue. Generally this can be divided into two classifications.

Trickle down is the classification in which the wealthy of society (given tax breaks) invest in infrastructure (roads, bridges, schools, military developers - manufactures, telecommunications, etc.). The workers gain the benefit of income from jobs.

Trickle up policy is the classification where workers are given tax reductions so they spend more. This results in more consumption of cars, TVs, houses, etc. resulting in more workers having a higher standard of living.

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