U.S.data suggest that the U.S.economy is located where on the Laffer curve?
A)On the right side, after the peak in tax revenue.
B)On the left side, before the peak in tax revenue.
C)At the peak in tax revenue.
D)The economy was on the right side before the 1980s and on the left side after 1980.

Question

Quizplus · Accepted Answer

The U.S. economy is generally considered to be on the left side of the Laffer curve, before the peak in tax revenue. This suggests that increasing tax rates could potentially increase total tax revenue, as the current rates are not at the point where they would start to disincentivize income generation to a degree that would reduce overall tax revenue.

USData Suggest That the U