Static tax analysis assumes
A. changes in the tax rates will change the tax base.
B. changes in the tax rates have no effect on the tax base.
C. changes in the tax rates have no effect on tax revenue.
D. all of the present tax rates will be in place for a minimum of twenty years.
Answer: B
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Health care debates illustrate how special interest groups can use their lobbying power to "control" the federal government to transfer wealth from one group of productive, income earning individuals to another group that may or may not be
productive. Indicate whether the statement is true or false
If the cost of medical care increases by 40 percent, then, other things the same, the CPI is likely to increase by about
a. 0.9 percent. b. 3.2 percent. c. 8.0 percent. d. 40 percent.
Which of the following would cause the level of income to change by the greatest amount, ceteris paribus?
A. A reduction in personal income taxes of $10 billion. B. An increase in Social Security payments of $10 billion. C. An increase in defense spending of $10 billion. D. All of the other choices have equal impacts on the level of income.
A trough in the business cycle occurs when:
A. the natural rate of unemployment is at a minimum point. B. employment and output reach their lowest levels. C. cyclical unemployment is at a minimum point. D. structural and frictional unemployment are at their highest levels.