One argument advanced in favor of not increasing the income tax on individuals with high income is that
A)increasing income tax increases wealth which contributes to increases in GDP.
B)increasing the income tax on these individuals will reduce economic efficiency.
C)increasing the income tax affects mostly middle-income and low-income individuals who are already paying heavy income taxes.
D)not increasing income taxes will discourage corporations from increasing investment.

Question

Quizplus · Accepted Answer

One argument against increasing income tax on individuals with high income is that it would reduce economic efficiency. This is because as the tax rate on high earners increases, they may be less incentivized to work harder, invest, or take risks, all of which contribute to economic growth. This argument suggests that keeping tax rates lower for high earners ultimately benefits everyone by supporting economic growth.

One Argument Advanced in Favor of Not Increasing the Income