Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up

Question:

Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

See More Books

Question Posted: Nov 01, 2023 02:54 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Specific identification: (a) must be used under IFRS if the inventory items are not interchangeable. (b) cannot be used under IFRS. (c) cannot be used under GAAP. (d) must be used under IFRS if it...
The budget committee of Hardesty Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2012. 1. Sales for May are expected to be...
Debra Bishops cabinet-making shop, in Des Moines, has five tools that automate the drilling of holes for the installation of hinges. These machines need setting up for each order of cabinets. The...
How does discourse help us understand individual words?
Describe the nature and components of, and the issues currently facing, executive compensation in various U.S. industries.
On Jan. 1 , 2 0 2 3 , MWM Corp. issued a series of 1 0 0 convertible bonds, maturing in 5 years. The face amount of each bond was $ 5 0 0 . MWM received $ 5 1 , 4 0 0 for the bond issue. The bonds...
Is it possible for a nation to run budget deficits and still have its debt/GDP ratio fall? Explain your answer. Is it possible for a nation to run budget surpluses and still have its debt/GDP ratio...
In a booming economy, is the federal government more likely to run surpluses or deficits? What are the various factors at play?
If Revere Company expects to sell 1,250 units of its product at $12 per unit, and break-even sales for the product are $13,200. What is the margin of safety ratio?
The aggregate supply curve of an economy is depicted by AS, shown in the graph on the right. Suppose that labour unions grant concessions, enabling firms to pay lower wages to their workers. Use the...
what is Medibank pestle analysis in term of these 2 statements? Current problem at hand deviates towards the fact that customers do not have high awareness of the health and wellbeing programs that...
Your company has a Microsoft 365 E5 subscription. You need to review the Advanced Analysis tab on emails detected by Microsoft Defender for Office 365. What type of threat policy should you...
(a) The Bright company is evaluating a project which will cost Rs 1,00,000 and will have no salvage value at the end of its 5-year life. The project will save costs of Rs. 40,000 a year. The company...
Dispatcher Collins is retiring after 30 years on the job. If each of the 38 officers in the department contributes $9 for a retirement gift, what is the total amount that could be spent on this gift
Verify that each of the cross products u x v in Exercise 1 is orthogonal to both u and v. In Exercise 1 (a) u = 2i + 3j + 4k, v = -i + 3j - k (b) u = i + k, v = 2i + 3j - k (b) u = i - j + 2k, v = 3i...
What are some of the possible sources of information about a company that could be used for determining the companys competitive stance?
Karoshi literally means death from overwork, and unofficial estimates are that as many people die each year from karoshi as from traffic accidents in Japanapproximately 10,000. In 2016, the legal...
Discuss the five types of problems related to employee work adjustment.
What are the 5 types of people identified by W. S. Neff?
help! Problem 14-14 (Algo) 4 A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported four at a time. A fabrication center...
Structuring a Special-Order Problem Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive modelthe SMAKat a price...
For journal entries 1 through 6 identify the explanation that most closely describes it. A. To record this period's depreciation expense. B. To record accrued salaries expense. C. To record this...

Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up

Question:

Step by Step Answer:

Arthur Laffers argument is based on the concept of supplyside economics which suggests that reducing tax rates can stimulate economic growth leading t...View the full answer

Principles Of Economics

Students also viewed these Business questions