3. Does raising the consumption tax help or hinder economic growth?
As seen in the current situation , I believe raising consumption tax hinders economic growth. Let me tell you why.
Firstly, raising this tax will make people hesitate to buy anything because they don't want to waste their hard-earned money. For instance, Last year consumption tax was raised from 5% to 8%. As a result, according to the data released by the government, the buying rate plummeted , that led to economic stagnation.
Secondly, raising consumption tax contributes to lifestyle deterioration because people tend to work harder for their family's survival. Since they no longer have time, they will not be able to go to gym and work out, or have fun with the family outdoor. This will result to physical and mental problems, which greatly affect economic growth. What I meant was unhealthy citizens means unhealthy economy.
Therefore , I would say that increasing the consumption tax will affect the spending habit and health of the people that will in turn lead to unhealthy economy.