Taxes matter: they have an effect not only on who bears the burden of paying for government expenditures but also on the level of economic activity and incomes in a country. Moreover, tax policy reflects social concerns as well as economic choices, such as how the burden of tax is spread over income classes, and how taxes are used to influence personal choices (about everything from saving, labour supply, and investment to the consumption of alcoholic beverages and the preservation of traditional activities, such as farming). Taxes have a powerful effect on the behaviour of individuals. Indeed, taxation is perhaps the principal means by which modern governments influence the lives and economic well-being of their citizens; it is therefore a central feature in political and economic debate
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