Supporters of a free enterprise system A. regard taxes as a threat to economic growth. B. regard taxes as a threat to government power. C. support high taxes on wealth. D. support high taxes on income.
History · Middle School · Thu Feb 04 2021
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Answer: A. regard taxes as a threat to economic growth.
Supporters of a free enterprise system, also known as capitalism, often view taxes as a potential threat to economic growth. The rationale behind this viewpoint is that higher taxes can reduce incentives for entrepreneurship, investment, and work, as they lower the potential rewards one can earn from these activities. If individuals and businesses keep less of their earnings due to high taxation, they may be less likely to engage in productive economic behaviors, which in turn could slow down the growth of the economy