Why does tax revenue decrease when a country that charges income tax at rate X raises that rate?
- AFewer goods will be produced.
- BPeople will work fewer hours to maintain incomes.
- CPrices will rise.
- DThere will be an increase in tax avoidance.
Economics 9708 · AS & A Level · Fiscal policy
Why does tax revenue decrease when a country that charges income tax at rate X raises that rate?