Identify Cause and Effect As you read the section "The Importance of National Taxes," consider what might happen if the government cut taxes drastically.

Great decrease occur in the government revenue if the government cut taxes drastically.

If the government cut taxes drastically, great decrease occur in the public or government revenue because the government earns money through taxes as well as goods produced by the government assets.

If the revenue is higher, the government is able to spend more for the welfare and prosperity of its people so we can conclude that national taxes is very important for the economy of the nation.

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Explanation:

First, a drastic cut in taxes will lower government revenue, making it difficult to operate as they once did. For example, there may be limited funds to complete ongoing and new projects.

Secondly this would impact the total money in circulation allowing more disposable income for individuals which could either affect the economy positively or negatively as the case may be.

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