Tax increases are the hike in the taxes levied on a common man’s income. It is the amount by which the tax has increased. Tax increases are caused primarily due to deficits that add to the national debts and sooner than later the debts have to be paid off. The government thus resorts to the hikes for compensating the same. According to Ron Paul, “Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.” Tax increases are also caused due to the ever increasing levels of corruption in our country. Corrupt politicians or officials spend government revenue illicitly and thereby, increasing the national debt that needs to be reduced. In the words, “Tax increases appear to have a very large sustained and highly significant negative impact on output.”
