High taxes in theory would slow the economy because they redirect money from the private sector to the government and reduce consumption.
How do high taxes slow the economy?
The economy grows when the private sector produces more and grows. High taxes will take money from this sector which would leave less cash for growth investment.
High taxes also reduce the amount that people have for consumption which would reduce Aggregate demand.
Find out more on Aggregate Demand at https://brainly.com/question/1490249.
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