Data from the Effects of the Substantial Tax Rate Reductions

question 90

Multiple Choice

Data from the effects of the substantial tax rate reductions in the 1980s

• A) cast serious doubt on the Laffer curve as a guide for tax policy.
• B) are consistent with the principles illustrated in the Laffer curve.
• C) generally reject the idea that lower tax rates can lead to higher tax revenue.
• D) support an "inverted Laffer curve" in which reducing tax rates for those with high incomes leads to lower tax revenue.

---

Definitions:

Proposed Rule

A potential regulation published by a government agency for public comment before it becomes finalized and enforceable.

Agency Policy

A principle or rule adopted by an organization or government entity to guide decisions and achieve rational outcomes.

Administrative Agency

A government body responsible for implementing legislation, enforcing laws, and regulating activities within its jurisdiction.

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.