The cuts in marginal tax rates initiated in 2001 are likely to reduce the excess burden of tax preferences.

Name: The cuts in marginal tax rates initiated in 2001 are likely to reduce the excess burden of tax preferences.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

The reduction in marginal tax rates can decrease the excess burden by reducing the distortions in economic behavior caused by tax preferences, as individuals and businesses have less incentive to alter their behavior to minimize tax liabilities.

The Cuts in Marginal Tax Rates Initiated in 2001 Are