Which of the following is an effect of an income tax

Question

Quizplus · Accepted Answer

Income tax distorts incentives by discouraging people from working more, since the more they work, the more tax they have to pay. This creates a disincentive for people to work harder and earn more money. Additionally, income tax can also discourage investment, as it reduces the amount of money available for savings and investing. However, income tax does not necessarily discourage the poor or the rich to save more, nor does it reduce the administrative burden of taxation.

Which of the Following Is an Effect of an Income