If the (average)tax rate is cut by 10%,and as a result the tax base rises by 15%,tax revenues will rise.

Name: If the (average)tax rate is cut by 10%,and as a result the tax base rises by 15%,tax revenues will rise.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A decrease in average tax rates can create an incentive for people to work harder and invest more, leading to a higher tax base. In this scenario, the 15% increase in the tax base offsets the 10% loss in tax revenue per unit, resulting in an overall increase in tax revenues.

If the (Average)tax Rate Is Cut by 10%,and as a Result