The Laffer Curve is a graph that shows the relationship between tax rates and government revenue from taxes. It is frequently used to show that lowering tax rates can increase total revenue from taxes.
Is it possible to boost tax revenue by lowering a tax rate?
Obviously, tax cuts will result in less revenue from taxes, which will likely lead to more borrowing. Despite the fact that some economists believe that lowering income taxes can boost productivity, which would make up for this drop in revenue.
What effect will lowering tax rates have on revenue?
Tax cuts result in either an increase in sovereign debt or a decrease in government revenues. Income tax and payroll tax are two of the many taxes that help fund the federal tax system.
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