The empirical evidence on labour supply supports the view that making income taxes more progressive would

Question

Quizplus · Accepted Answer

Empirical evidence suggests that while progressive income taxes may have a small negative impact on the incentive to work, the effect is not significant and may be outweighed by other factors such as the availability of jobs and the desire for higher income. Additionally, progressive income taxes can potentially increase tax revenue as higher income earners may be able to afford a higher tax burden. Therefore, making income taxes more progressive would have a minor impact on the incentive to work.

The Empirical Evidence on Labour Supply Supports the View That