The government of Tortunia increased its income tax rates by 20% in all tax brackets. The effect

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The government of Tortunia increased its income tax rates by 20% in all tax brackets. The effect of this tax rate increase on total tax revenues works through several pathways. Describe whether you expect the higher tax rate to raise or lower tax revenue through each of the following pathways:
a. The direct effect of the tax rate increase
b. The effects of the tax rate increase on personal income
c. The effects of the tax rate increase on tax evasion or tax avoidance
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