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7 votes
7 votes
What is one reason tax rates can change?

A. They can increase to ensure the state has enough revenue.
B. They can increase to boost the economy.
C. They can increase to give breaks to campaign donors.
D. They can decrease to improve state income. .

User Sukhbir
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1 Answer

18 votes
18 votes

Answer: B. They can increase to boost the economy.

Explanation: A wouldn't work because of the government. The government doesn't get the businesses revenue.

The workers stay the same because even if the business doesn't get a tax break, it just affects the business owners, so C is not the answer either.

It wouldn't increase the state budget because the state wouldn't be getting any tax money, it would actually decrease the budget, so the answer is not D. So, you are only left with the Answer B which is They can increase to boost the economy.

B is the answer.

PS: I hope this helps!! Have an Amazing Day!!

User Joebobfrank
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