A decrease in the marginal tax rates is likely to

Question

Quizplus · Accepted Answer

Decreasing marginal tax rates would provide greater incentives for entrepreneurship as it would increase the expected return on investment. It would also incentivize individuals to work harder to earn more income as they are able to keep a larger percentage of their earnings. However, it may not necessarily lead to a decrease in investment as there are other factors that affect investment such as the overall economic conditions and access to capital.

A Decrease in the Marginal Tax Rates Is Likely to