During a recession, the progressive income tax causes government revenues to

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During a recession, incomes generally decrease, which leads to a decrease in government revenues from progressive income taxes. Therefore, government revenues fall proportionately more than the decline in GDP. This is because the progressive income tax system results in higher taxes on higher-income earners, who are more likely to experience a decline in income during a recession.

During a Recession, the Progressive Income Tax Causes Government Revenues