An example of tax smoothing is provided by evidence of

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Quizplus · Accepted Answer

Tax smoothing refers to the idea that governments should adjust taxes in a predictable and steady manner to minimize economic disruptions. During World War II, the US government relied heavily on debt financing rather than taxation to pay for the war effort, which allowed for smoother tax rates during and after the war. This is an example of tax smoothing, as the government avoided abrupt changes in taxation that could have negatively impacted the economy.

An Example of Tax Smoothing Is Provided by Evidence of