Tax and spend

From Wikipedia, the free encyclopedia

This article does not cite any references or sources. (September 2007) Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed.

Tax and Spend is a pejorative economic-political term for raising the tax burden in an economy so that more can be spent on state-provided services (public services). It is most often used by political opponents to describe the economic approach of socialist-leaning systems of government.

The opposite approach is low tax and low spend; reducing government spending to lower the tax burden. There are other options that exist, as well, such as raising bonds to pay for higher government services, a strategy which puts the government into debt.