How do global tax policies impact economic growth in 2025?.

Global tax policies significantly affect economic growth by shaping the incentives for investment, influencing consumer behavior, and determining government spending. Countries that maintain competitive tax rates often attract foreign investment, which can spur local job creation and innovation. Conversely, higher taxes can lead to reduced disposable income for individuals and businesses, potentially slowing economic activity. The balance between tax revenue and economic stimulus remains a critical consideration for policymakers.