Decreasing tax rates would likely increase activities in the underground economy.

Name: Decreasing tax rates would likely increase activities in the underground economy.
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Question

Quizplus · Accepted Answer

Decreasing tax rates would provide less incentive to participate in the underground economy since the cost savings of evading taxes would be less significant. Conversely, increasing tax rates would provide greater incentives to participate in the underground economy to avoid high taxes.

Decreasing Tax Rates Would Likely Increase Activities in the Underground