In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?

Name: In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?
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Quizplus · Accepted Answer

Static tax analysis assumes that the base of taxation does not change with the tax rate. Therefore, an increase in the tax rate will always lead to an increase in tax revenues under this assumption, as it does not account for changes in taxpayer behavior that might affect the actual tax base.

In What Type of Analysis Will an Increase in the Tax