Taxation can really affect how well the economy grows. Here’s how:

• Cutting Down Investment: When taxes are too high, businesses might not want to invest in new projects or new ideas.
• Decreasing Consumer Spending: Higher taxes mean families have less money to spend. This leads to less buying and slows down the economy.

To help solve these problems, we can:

1. Create Targeted Tax Cuts: We should lower taxes for small businesses and families that earn less money.
2. Make the Tax System Simpler: If the tax rules are easier to understand, more people and businesses will follow them and feel encouraged to invest.

Even though there are still challenges, smart changes can help create a better environment for the economy.