Estoluania is considering replacing its progressive tax system with a flat tax that would raise equal revenue.

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Estoluania is considering replacing its progressive tax system with a flat tax that would raise equal revenue. How could this change encourage risk-taking behavior? How could it discourage risk-taking behavior?

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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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Question Posted: Apr 25, 2015 07:46 AM

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Estoluania is considering replacing its progressive tax system with a flat tax that would raise equal revenue.

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The move to a flat tax would reduce the top marginal tax rate thereby increasing the upside to risky ...View the full answer

Public Finance and Public Policy

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