High tax rates tend to:
A) promote economic development.
B) make a nation's currency tradable.
C) discourage entrepreneurship.
D) reduce the amount of money created by the government.

Question

Quizplus · Accepted Answer

High tax rates can discourage entrepreneurship as it reduces the profits that entrepreneurs can earn from their businesses. This can make it less attractive for people to start new businesses and can stifle economic growth.

High Tax Rates Tend To