One way to increase labor force participation is to cut income tax rates.Which of the following is true given such a scenario?
A) Cutting income tax rates increases labor force participation and also allows all other taxes to be cut
B) Cutting income tax rates may force the government to raise other taxes or cut some programs
C) Cutting income tax rates raises more tax revenue and allows for even more government programs
D) Cutting income tax rates puts the burden of the tax cuts on those who now join the labor force.
E) Cutting income tax rates reduces labor force participation.
Correct Answer:
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