According to the Laffer curve, the federal tax rate affects:
A) incentive to work.
B) savings.
C) investment.
D) tax revenue.
E) All of the above.

Question

Quizplus · Accepted Answer

The Laffer curve shows that as tax rates increase, there reaches a point where the disincentive to work, save, and invest outweighs the increased revenue gained from higher taxes. Therefore, all of the choices listed are affected by the federal tax rate according to the Laffer curve.

According to the Laffer Curve, the Federal Tax Rate Affects