Answer to Question #90160 in Macroeconomics for kamogelo

Question

Suppose that a proposal for tax reductions associated with the purchase of capital is up for debate. Suppose too that union leaders are called upon to comment on the proposal from the perspective of how it will affect the welfare of their members as workers (not consumers). Will they all agree on the effects of the proposal? Explain your answer.

Answer 1

I think everyone will agree. It's profitable. If taxes related to the purchase of capital are reduced, capital transactions will become more profitable and profitable. Such transactions will be more likely to make. And investments will give growth to production and the economy as a whole, which will increase the capital-labor ratio and the well-being of citizens.