Steep tax-rate will reduce the willingness to
Work
all of the above.
Investment
both A and B
Answers
Answered by
3
Explanation:
investment is the correct option....
Answered by
0
Answer:
Steep tax-rates will dis-incentivize work and investment both.
Explanation:
The Laffer curve shows how taxing beyond the optimal income/corporate tax rate can actually reduce the tax revenues the government receives.
This is because people are discouraged from working harder, since the extra effort is taxed. Similarly, people are dissuaded from investing because stand to lose significant profits to the government.
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