The Laffer curve is based upon the idea that
A. the higher the tax rate the greater the tax receipts.
B. high tax rates may yield less tax revenue than lower tax rates.
C. the lower the tax rate the greater the tax receipts.
D. income taxes are inefficient because tax reform has made it more difficult to legally avoid taxation.
B. high tax rates may yield less tax revenue than lower tax rates.
You might also like to view...
Soldiers in a World War II prisoner-of-war camp
A) used cigarettes as money. B) used cowrie shells as money. C) used U.S. dollars as a commodity money. D) used gold as a fiat money.
Why are consumption taxes relevant for measuring the tax wedge?
What will be an ideal response?
Refer to Scenario 12.2. What is the profit maximizing price?
A) 205.72 B) 240 C) 210 D) all of the above E) none of the above
Which of the following industries would be considered to have a capital intensive production process?
A. Creating a painting. B. Farming in a rich country C. Creating a hand-crafted wine. D. Serving food at a restaurant.