Tax

Tax is to impose a financial charge or other levy upon an individual or legal entity by a state or the functional equivalent of a state.
There are two types of tax:
Direct tax : one that taxes the income of people and firms and that cannot be avoid
Indirect tax: a tax levied on goods and services.
Increase/decrease tax:
1.The price of products will increase, which means the cost of produce will rise, so producer will supply less, or increase the price of products, and then the demand of this product will goes down , unless the demand is inelastic , or it is snob good, the demand maybe not change or goes up.
2.lower inflation
3.increase unemployment
4.government budget deficit : government spending greater than tax, which can decrease the unemployment rate.maybe living standard increase , because people can get more subsidies from the government. Also maybe decrease the recession, because more people get job , the productivity will increase, the real GDP will goes up.
5.government budget surplus: which means government spending less than tax,this can help decrease the inflation , because if tax increase, people need afford more money to satisfy their wants,it is therefore people maybe to have opportunity cost or trade off. Etc, so the AD will goes down. Thus high taxation helps decrease inflation.