Tax impacts on GDP

Most taxes have an impact on GDP, which makes sense as a starting point. Some of the taxes have other inputs which determine how much revenue will be collected by the tax, but these inputs do not impact the GDP impact of the tax.

For example, I had CO2 emissions so low that a carbon tax would produce 0 income, however raising this tax on nothing would harm my GDP. This seems weird to me.

Ok, I’ve dropped a few lines here, I’m done for today, and on to other things. I hope my balance feedback helps.

1 Like