The following question are based on the following Laffer curve:

-Advocates of supply-side tax reductions,such as a reduction in the capital gains tax,argue that these taxes currently have marginal tax rates that are
A) 0.
B) to the left of 0a.
C) between 0a and 0b.
D) to the right of 0b.
E) greater than 0e.

Question

The following question are based on the following Laffer curve:
 
-Advocates of supply-side tax reductions,such as a reduction in the capital gains tax,argue that these taxes currently have marginal tax rates that are
A) 0. 
B) to the left of 0a. 
C) between 0a and 0b. 
D) to the right of 0b. 
E) greater than 0e.

Quizplus · Accepted Answer

Supply-side tax reduction advocates argue that current marginal tax rates, such as those on capital gains, are too high, implying they are to the right of the optimal point (0b) on the Laffer Curve, where tax rates are so high that they discourage investment and work, leading to lower tax revenues.

The Following Question Are Based on the Following Laffer Curve