Data from the effects of the substantial tax rate reductions in the 1980s
a. cast serious doubt on the Laffer curve as a guide for tax policy.
b. are consistent with the principles illustrated in the Laffer curve.
c. generally reject the idea that lower tax rates can lead to higher tax revenue.
d. support an "inverted Laffer curve" in which reducing tax rates for those with high incomes leads to lower tax revenue.
B
Economics
You might also like to view...
What would be expected to happen to the size of the underground economy if:
a. businesses tax rates decreased. b. government regulations on businesses increased dramatically. c. the sale and use of marijuana was legalized in all 50 states.
Economics
Expected profit and the real interest rate affect investment decisions
Indicate whether the statement is true or false
Economics