Answer to Question #304700 in Sociology for Khanyi

Question

Two impacts of income tax on final salary package (4)

Answer 1

1. There is a direct impact on the savings and investment habits. For instance, individuals will reduce the money directed to savings and investment activities.
2. As a result, government tax revenues are placed in productive investments, therefore, With the spending, the government can promote inclusive growth, equality and efficiency in the economy.