A cut in the income tax rate ________ the tax wedge and ________ employment,saving and investment.

Name: A cut in the income tax rate ________ the tax wedge and ________ employment,saving and investment.
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Question

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Cutting the income tax rate decreases the tax wedge (the gap between what the employer pays and what the employee receives) and increases the incentive to work, save, and invest. This helps to boost employment, savings, and investment.

A Cut in the Income Tax Rate ________ the Tax