Asked by Pasha Harmidy on Jun 19, 2024
Verified
Which tax rates result in zero tax revenue?
A) F and G
B) G and H
C) F and H
D) 0 and 100%
E) All of the choices are correct
Tax Rates
The percentage at which an individual or corporation is taxed, which can vary by income or profit level, type of tax, and jurisdiction.
Zero Tax Revenue
A theoretical or policy situation where the government sets tax rates at levels that result in no revenue being collected, often discussed in contexts of extreme tax models.
- Analyze the Laffer curve alongside its impact on taxation policy and public revenue.
Verified Answer
LR
Lacey ReddickJun 24, 2024
Final Answer :
D
Explanation :
Tax rates of 0% and 100% result in zero tax revenue. At 0%, there is no tax collected on any income. At 100%, there is no incentive for individuals to earn income, leading to no taxable income and thus no tax revenue.
Learning Objectives
- Analyze the Laffer curve alongside its impact on taxation policy and public revenue.