A tax cut will unambiguously lower income-tax revenue (True or false?) Provide an explanation.

Mairoon

wrote...

Posts: 850

Rep:

6 years ago

A tax cut will unambiguously lower income-tax revenue (True or false?) Provide an explanation.

A tax cut will unambiguously lower income-tax revenue.
True or False? Provide an explanation.

Textbook

Microeconomics

Edition: 6^th

Author: Perloff

Read 54 times

1 Reply

Report

Related Topics

Solved Governments do not respond to prices (True or false?) Provide an explanation.
Solved If a good is not produced, then there is no demand for it (True or false?) Provide an explanation.
Indifference curves cannot ever be concave for two goods (True or false?) Provide an explanation.
Solved Production functions only apply to advanced economies (True or false?) Provide an explanation.
Solved The length of the short-run is the same for all firms (True or false?) Provide an explanation.
Solved Short-run costs are never equal or lower than long-run cost (True or false?) Provide an explanation.
Solved Firms price discriminate to maximize total revenue (True or false?) Provide an explanation.
Solved A tax cut will unambiguously lower income-tax revenue.

Replies

Tyforumca

wrote...

6 years ago

False. It depends on how the quantity of labor supplied responds to the increase in the after-tax wage rate. If the income effect dominates, the quantity of labor supplied falls and so will tax revenue. If the substitution effect dominates, the quantity of labor supplied increases, and income-tax revenue could increase. This is a function of whether the after-tax wage was low already because the tax rate was relatively high.

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1576 People Browsing

107 Signed Up Today

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

327

250

624

Your Opinion

Previous poll results: Do you believe in global warming?

Bonobos, Chimpanzees, and the 98% DNA Link

The Toxic Skin and Fungi Defense

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

Courses by Biology Forums

Ready to ask a question on Biology Forums? Try it out

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.