Dynamic tax analysis generally predicts
A) that the higher the tax rate is, the higher the tax revenue will continue to be into the future.
B) that the higher tax rates lead to higher revenues only to a point at which revenues will begin to decrease due to a diminishing tax base.
C) that lower tax rates will always and continuously lead to increased tax revenues.
D) that lower tax rates are always going to lead to decreased tax revenues.
B
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One way to get a government contractor to consider life-cycle costs is to _____
a. use a cost plus incentive fee contract b. use a cost plus fixed fee contract c. use a fixed fee plus contract d. also write a maintenance contract with the contractor
Higher stock prices can lead to greater investment spending by firms because:
A. the firm gets 100 percent of the increase in the stock value. B. the market value of a firm is now less than the replacement cost of the firm. C. the cost of internal financing is lower and the firm also gets 100 percent of the increase in the stock value. D. the cost of external financing is lower.