Tax rate increase => Less Consumption => Less Tax income
On top of that
Tax rate increase => Less Consumption => Higher unemployment => Less Consumption and Higher Social Security expenses
Ah! Let me also say that:
Tax rate increase => Less Consumption => Lower Investment => Higher unemployment and low technology renovation of business tissue.
Again, I make myself available to give free lessons on Economics to all the Portuguese Government members. Believe me, it has a positive return on investment for me...
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