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This article describes the effect of raising taxes on the people. Tax payed by the rich can be used by the government for man reasons such as implementing new policies, improving public amenities, and to benefit the poor. The article says that raising taxes has two main effects, one that people work less since work is now less rewarding. It also may cause people to feel the need to work longer hours because the might need to make some more money to keep the household running. One important determinant of the effect of tax rates is the relative position compared to other countries. Another is the international mobility. This mobility occurs because people believe that in other countries with lower taxes their pay will be greater and they can live a better life. The greater the mobility, the greater the elasticity of supply with respect to changes in taxes.