An efficiency loss due to higher income tax rates would occur if the well-paid choose to

Name: An efficiency loss due to higher income tax rates would occur if the well-paid choose to
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Question

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The well-paid individuals may choose to take more of their compensation in forms not subject to income tax, such as stock options or benefits packages, in order to offset the higher income tax rates. This would lead to an efficiency loss as the allocation of work and resources becomes distorted due to tax considerations.

An Efficiency Loss Due to Higher Income Tax Rates Would