Which Effect on Income Tax Collections Is NOT Indicated by the Laffer

question 202

Multiple Choice

Which effect on income tax collections is NOT indicated by the Laffer curve

• A)Income tax collections will be very low if income tax rates are very low.
• B)Income tax collections will be very low if income tax rates are very high.
• C)Income tax collections will be at a maximum if income tax rates are at some intermediate level between very low and very high.
• D)Income tax collections will be very high if income tax rates are very high.

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