Studies indicate that if income tax rates in Sweden had been reduced, income tax collections would have:
A)fallen
B)risen
C)remained constant
D)risen, fallen or remained constant (the studies were inconclusive)

Question

Quizplus · Accepted Answer

Reducing income tax rates can lead to increased economic activity, potentially broadening the tax base and increasing overall tax collections, a concept supported by the Laffer Curve theory.

Studies Indicate That If Income Tax Rates in Sweden Had