In what type of analysis could an increase in the tax rate lead to a decrease in tax revenues?

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

Dynamic tax analysis considers the behavioral responses of taxpayers to changes in tax rates, including the possibility that higher rates could reduce economic activity and thus tax revenues, aligning with the scenario described.

In What Type of Analysis Could an Increase in the Tax