preshkari04 preshkari04

28-03-2021
Computers and Technology

contestada

why is an increase in tax rate not necessarily increase government revenue

Respuesta :

nkunajunior170 nkunajunior170

28-03-2021

Answer:

An increase in tax rate raises more revenue than is lost to offsetting worker and investor behavior

Explanation:

Increasing rates beyond T* however would cause people not to work as much or not at all, thereby reducing total tax revenue

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