According to the Laffer Curve

Question

Quizplus · Accepted Answer

The Laffer Curve suggests that there may exist a tax rate beyond which increasing rates will result in less revenue. This implies that there could also exist two tax rates, one on either side of the revenue-maximizing point, which could deliver the same level of tax revenue. Therefore, lower tax rates will not always lead to higher revenue, and higher tax rates will not always lead to less revenue, as suggested in options B, C, and D. Option E is also incorrect as the curve suggests that there is not a unique tax rate for each level of revenue.