It is likely that people will work less when the marginal tax rate is
A)91 percent.
B)30 percent.
C)26 percent.
D)2 percent.

Name: It is likely that people will work less when the marginal tax rate is A)91 percent. B)30 percent. C)26 percent. D)2 percent.
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Question

Quizplus · Accepted Answer

When the marginal tax rate is very high, such as 91 percent, individuals are likely to work less because a significant portion of their additional earnings is taken as tax, reducing the incentive to work more.

It Is Likely That People Will Work Less When the Marginal