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Which of the Following Statements About Taxation Is TRUE

Question 126

Multiple Choice

Which of the following statements about taxation is TRUE?


A) Increasing taxes will always increase tax revenues.
B) Static tax analysis recognizes that an increase in taxation could lead to a decrease in tax revenues.
C) Dynamic tax analysis assumes that an increase in taxation will leave the tax base unchanged.
D) There is a tax rate at which tax revenues are maximized.

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