One Argument for Tax Cuts When the Government Is Running

question 120

Multiple Choice

One argument for tax cuts when the government is running a budget deficit is:

• A) that lower tax revenue will reduce the budget deficit.
• B) that lower marginal tax rates will incentivize employers to hire more workers.
• C) that lower corporate tax rates will incentivize people to work and thus increase the overall tax revenue.
• D) that lower marginal tax rates will incentivize people to work and thus increase the overall tax revenue.
• E) that lower marginal tax rates will decrease aggregate supply.