164k views
1 vote
How might tax-exempt income and tax credits be used be government to stimulate economic growth?

User Kit Menke
by
7.2k points

1 Answer

2 votes
The government creates financial incentives for individuals to spend more money since they are receiving a larger portion of their paycheck or paying less in taxes. The hope is that people and business will buy items an not invest in savings such as stock buy backs or other options.
User Cekisakurek
by
6.5k points