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33 votes
33 votes
You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.

You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one:
A. This is only true if the marginal tax rate is too high.
B. This is only true if the marginal tax rate is already very low.
OC. This isn't true. If the marginal tax rate is reduced, it always generates less total tax revenue.
D. It is always the case that reducing the marginal tax rate causes people to work more and increase the total
amount of tax revenue collected.

User Esteban Filardi
by
2.7k points

1 Answer

7 votes
7 votes

answer:

not a.

not b.

not c.

it's d.

Step-by-step explanation:

Lower tax rates enable firms to invest more – this leads to higher growth and therefore, higher tax revenues

User Mcanti
by
2.7k points