Impacts of differing levels of public expenditure on the level of taxation

The level of public expenditure is directly related to the level of taxation. The higher the public expenditure, the higher the amount of taxes that must be collected from taxpayers. The amount of public expenditure is determined by the government to help fund the public services and infrastructure that it provides to its citizens. When there is a higher level of public expenditure, residents must pay more taxes to make up for the additional costs associated with providing such services. This can have varying impacts, depending on the type of taxes being collected. For example, if the government increases income taxes, individuals will pay more in taxes to cover for the extra public spending. Meanwhile, if property or sales taxes are raised, businesses will pay more to cover the additional costs. In some cases, higher public expenditure can actually lead to lower overall tax rates. This occurs when the government pursues an expansionary fiscal policy, which is when more money is spent on public services. This increased spending can result in economic growth, which increases the tax base and allows the government to actually reduce overall tax rates.