According to the Laffer curve, raising the tax rate

Question

Quizplus · Accepted Answer

The Laffer curve suggests that at low tax rates, increasing the tax rate would increase the revenue. However, at some point, further increases in the tax rate would result in a decrease in revenue, as it would discourage work and investment. Therefore, the answer is that raising the tax rate might increase, decrease, or not change the amount of tax revenue, depending on the initial tax rate and where the economy is on the Laffer curve.

According to the Laffer Curve, Raising the Tax Rate