Recall the Application about European soccer stars choosing to play for clubs in countries with lower tax rates to reduce their taxes to answer the following question(s). A study conducted by economists Henrik Jacobsen Kleven, Camille Landais,and Emmanuel Saez found that top tax rates and tax breaks do matter when soccer stars choose where to locate.
-Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, ________ in country B will tend to ________.

Question

Quizplus · Accepted Answer

If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, it is likely that labor supply in country B will decrease as workers move to country A to benefit from the lower tax rates.

Recall the Application About European Soccer Stars Choosing to Play