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Suppose that income tax revenues are maximized at an average (income) tax rate of 45 percent. If the Laffer curve is a correct diagrammatic representation of the relationship between tax rates and tax
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Suppose that income tax revenues are maximized at an average (income) tax rate of 45 percent. If the Laffer curve is a correct diagrammatic representation of the relationship between tax rates and tax revenue, it follows that a tax rate of

User Ben Edmunds
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15 votes
15 votes

Answer:

-35 percent will reduce tax revenues.

-48 percent will reduce tax revenues.

User HalliHax
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