Explain why an increase in the tax rate can result in lower tax revenues
What will be an ideal response?
According to dynamic tax analysis, consumers may react to a higher tax rate by cutting back on purchases of goods and services included in the tax base. The reduction in the tax base may eventually be sufficiently large so that tax revenues decline.
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U.S. immigrants (legal and illegal) have:
A. higher prison rates and crime rates than the native-born population. B. lower prison rates and crime rates than the native-born population. C. lower prison rates, but illegal immigrants have higher crime rates than the native-born population. D. higher prison rates, but lower crime rates, than the native-born population.
The Federal Reserve System controls the money supply primarily through
A. open market operations. B. accounting operations. C. reserve requirement changes. D. jawboning.