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Those who favor increases in tax rates are often disappointed that the additional revenue turns out...

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Economics

  1. Those who favor increases in tax rates are often disappointedthat the additional revenue turns out to be less than expected.Conversely, those who fear that cuts in tax rates willsubstantially reduce the government’s revenues have often beensurprised to find the government’s revenues rising. Explain both ofthese phenomena.

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4.3 Ratings (920 Votes)
Increase in tax rates often results in less than expected increase in revenue This is because it results in a slowdown fo the economy As people are left with less disposable income    See Answer
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