The Laffer Curve Makes the Point That Cutting a Very

question 100

Multiple Choice

The Laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax revenues __________.

• A) lower; rise
• B) lower; fall
• C) raise; rise
• D) raise; fall

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Definitions:

Educator Expense Deduction

The Educator Expense Deduction allows eligible educators to deduct unreimbursed expenses for classroom supplies, up to a specified amount annually.

Eligible Educator

A teacher or educational professional who meets certain criteria and may qualify for specific tax deductions or benefits.

Student Loan Interest

The cost paid for borrowing money for education, which can sometimes be deductible on federal taxes.

Educational Institution

An organization dedicated to education, such as a school, college, university, or training center.