How do high marginal tax rates influence the growth and prosperity of countries? What type of tax policy is needed to foster economic efficiency and growth?
Economic theory suggests that marginal tax rates can have important effects on incentives, and studies of international tax structures confirm this. Countries with high marginal tax rates tend to have low or negative rates of economic growth. Also, laws that tax capital investment heavily tend to stifle economic growth. Countries that experience rapid economic growth tend to have low marginal tax rates.
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Trade will be beneficial for a nation with a comparative advantage in producing a certain product
Indicate whether the statement is true or false
Commandeering resources is less efficient than commandeering money
Indicate whether the statement is true or false
The reforms that were put in place in the Soviet Union after 1985 were called
a. The Lieberman proposals b. The Kosygin reform c. Organizational reform d. Perestroika e. None of the above