High tax rates often encourage taxpayers to engage in illegal maneuvers to avoid paying taxes.The term used for this behavior is:

Question

Quizplus · Accepted Answer

Tax avoidance refers to legal methods used to reduce tax liability, while tax evasion is the illegal practice of not reporting or underreporting income to avoid paying taxes. High tax rates may incentivize taxpayers to engage in tax evasion, as they may see it as a way to keep more of their money. Therefore, the term used for illegal maneuvers to avoid paying taxes is tax evasion.

High Tax Rates Often Encourage Taxpayers to Engage in Illegal