Economist C believes that if tax rates are cut,tax revenue is likely to remain constant.This economist most likely believes that the percentage decrease in tax rates will ______________________________ percentage rise in the tax base.

Question

Quizplus · Accepted Answer

Economist C's belief that tax revenue will remain constant despite tax cuts implies that the decrease in tax rates will be offset by an equivalent percentage increase in the tax base, thus keeping the overall tax revenue unchanged. This concept aligns with the idea that lower tax rates can stimulate economic activity, expanding the tax base to a degree that compensates for the lower rates.

Economist C Believes That If Tax Rates Are Cut,tax Revenue