The most likely effect of a law that reduces the number of federal income tax brackets is to:

Question

Quizplus · Accepted Answer

Reducing the number of federal income tax brackets simplifies the tax system but can also make it less progressive. This means that changes in income will result in smaller changes in the amount of taxes paid, thereby weakening the automatic stabilizing effect of the tax system on the economy. Automatic stabilizers work by reducing the impact of economic fluctuations without the need for new government action, and a more progressive tax system enhances this effect by automatically increasing taxes more during booms and less during recessions.

The Most Likely Effect of a Law That Reduces the Number