Discuss the significance of taxes and its effect

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Question - With the effects of the global pandemic, country A would impose a new law regulating the tax reform program of the country. Thus with this, the country would also enters a drastic change in its economic set-up. Basically, income received by employees increases however, taxes with respect to prices of commodities also increases tremendously. Furthermore, fewer jobs would be offered thus there would be a retrenchment of contractual employees.

a. Would there be a significant change in the demand and supply of the different commodities with respect to this new law due to the global pandemic? Discuss your answer.

b. Having the backlash of the new law, would you agree that the government should provide a subsidy to various companies in China affected by the tax reform? Justify and provide supplements to support your answer.

c. Discuss the significance of taxes and its effect to current businesses, livelihood of people, the government and its citizens. Provide possible circumstances and scenarios to support your discussion.

Reference no: EM133183278

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