According to the Laffer curve, an increase in the tax rate may decrease tax revenues.

Name: According to the Laffer curve, an increase in the tax rate may decrease tax revenues.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The Laffer curve postulates that at a certain point, further increases in tax rates will lead to a decrease in tax revenues as individuals and businesses may choose to decrease their taxable activities or engage in tax avoidance measures.

According to the Laffer Curve, an Increase in the Tax