The Table Below Shows 2012 Federal Income- Tax Rates in Canada

The table below shows 2012 federal income- tax rates in Canada. $$\begin{array} { | c | c | } \hline \text { Taxable Income } & \text { Mar ginal Tax Rate } \\\hline \$ 0 - \$ 42707 & 15 \% \\\hline \$ 42708 - \$ 85414 & 22 \% \\\hline \$ 85415 - \$ 132406 & 26 \% \\\hline \$ 132407 \text { and over } & 29 \% \\\hline\end{array}$$ TABLE 18- 1
-Which of the following best describes the policy implications of a Laffer curve?

A) Policymakers should carefully consider whether a given increase in tax rates would increase or decrease tax revenues.
B) Policymakers should avoid imposing taxes on income as they decrease the work incentive.
C) Policymakers should eliminate tax deductions and maximize revenue at any given tax rate.
D) Policymakers should eliminate tax loopholes and maximize revenue at any given tax rate.
E) Policymakers should set the tax rate as low as possible to maximize tax revenue.