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Business, 04.04.2020 02:57 nails4life324

Suppose Congress enacts a tax reform law, and the average federal tax rate drops from 30% to 20%. Researchers investigate the impact of the tax cut and find that the income subject to the tax increases from $600 billion to $650 billion. The theoretical explanation is that workers have increased their work effort in response to the incentive of lower taxes.

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Suppose Congress enacts a tax reform law, and the average federal tax rate drops from 30% to 20%. Re...
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