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Tax policies and market efficiency, production, taxes.

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Do tax policies play a role in the ability to achieve market efficiency?

What will the effect be if government promotes production through various programs and then raises taxes on small businesses?

Yes tax policies do play an important ...

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Do tax policies play a role in the ability to achieve market efficiency?
What will the effect be if government promotes production through various programs and then raises taxes on small businesses?

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Do tax policies play a role in the ability to achieve market efficiency?

Yes tax policies do play an important role in achieving market efficiency. Usually (without getting into too much debt), if taxes are cut for corporations and people, there is more money to spend and or invest. When people buy more goods and services, companies usually gain more profits (assuming they're well run), so stock values go up. Stock values go up when the economy is doing well (usually) because people feel more confident and want to put more money into wall street and abroad too (especially if their economies are doing well because ...

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