Marginal tax rates were reduced in 2001.Other things being equal, this is likely to:

Question

Quizplus · Accepted Answer

The reduction in marginal tax rates makes it more beneficial for individuals and businesses to report their income and pay taxes rather than engaging in tax evasion. This is because the cost of evading taxes is now higher relative to the amount of taxes saved due to the lower rates. Therefore, reducing marginal tax rates is likely to decrease tax evasion.

Marginal Tax Rates Were Reduced in 2001