A 2 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming static tax analysis?

Question

Quizplus · Accepted Answer

A static tax analysis assumes that there will be no change in behavior or economic activity in response to the tax. Therefore, multiplying the 2% tax rate by the $100,000 tax base results in $2,000 in total revenue collected.

A 2 Percent Tax Is Going to Be Applied to a $100,000