If a firm moves into a higher tax bracket, the firm's CCA tax shields become less valuable than previously, all else equal.

Name: If a firm moves into a higher tax bracket, the firm's CCA tax shields become less valuable than previously, all else equal.
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When a firm moves into a higher tax bracket, the value of its CCA (Capital Cost Allowance) tax shields actually increases because the tax savings from the deductions are greater at higher tax rates.

If a Firm Moves into a Higher Tax Bracket, the Firm's