Asked by
Nindia Yuiliani
on Dec 11, 2024
Verified
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.
Laffer Curve
An illustration of the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes revenue.
Tax Rate Reductions
A decrease in the percentage at which income or transactions are taxed by governmental authorities.
- Comprehend the principles of the Laffer curve and its effects on determining tax levels.
Verified Answer
ED
Learning Objectives
- Comprehend the principles of the Laffer curve and its effects on determining tax levels.