The belief that a cut in the income tax rate must raise government income tax revenue has the implicit assumption that

Question

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The belief that a cut in the income tax rate must raise government income tax revenue assumes that higher income tax rates discourage work (reduce the number of hours worked), leading to less taxable income. This is based on the idea that if taxes are lower, people will be more inclined to work more hours since they keep a larger portion of their earnings, potentially increasing overall tax revenue despite the lower rate.

The Belief That a Cut in the Income Tax Rate