Asked by Suzanne Meyer on Apr 27, 2024
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Economists dismiss the idea that lower tax rates can lead to higher tax revenue, because there is a consensus that the relevant elasticities of demand and supply are very low.
Tax Rates
The percentage at which an individual or corporation is taxed, which can vary based on income level, type of goods or activities.
Elasticities
Measures of how much the quantity demanded or supplied of a good responds to changes in prices, income, or other factors.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given point in time.
- Discuss the principles underlying the Laffer curve and supply-side economics.
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Learning Objectives
- Discuss the principles underlying the Laffer curve and supply-side economics.
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