In the Final Paper, you will consider the economic implication of taxes and how they affect the economy. What happens to the economy when the government raises or lowers taxes? In answering this question, it is important to look at the topic from an economic perspective rather than a political one. Be sure to use the knowledge you have gained in this class in formulating your response. In addition to your textbook use at least three scholarly sources to support your arguments, including a minimum of two from the databases available at the Ashford University Library. Your Final Paper should address the following when formulating your arguments:
Describe the effect on net personal income when the government raises taxes and when the government lowers taxes.
Describe how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes.
Identify what other economic factors are affected when taxes are raised or lowered, and explain the results of these changes.
Explain why the government should or should not increase taxes on everyone in order to equalize income and wealth.