At the end of 2021, job growth has slowed and will be negative. Businesses have largely resisted recruiting due to concerns about uncontrolled pandemic progress. By 2022, as the number of people living in poverty has climbed to over 8 million, increased poverty and wealth imbalance are projected. Hundreds of small businesses have already closed their doors permanently, and many more are on the verge of doing so.
Economics is divided on the subject of taxation and economic growth. According to free-market economics, limiting “the market” through raising taxes is detrimental to economic progress. However, abstract theoretical models do not accurately reflect the real-world economy. These negative growth consequences are frequently not found in empirical research that uses real-world data. Policymakers should reconsider adopting neoclassical economic models to examine tax adjustments because they frequently fail to forecast economic growth patterns appropriately.