June 15, 2011

• Tax Revenue and Tax Rates

  How do tax rates affect government revenue? A worthy question, and a difficult one, since it involves many factors. It seems natural that raising taxes would also raise revenue, and sometimes it does. Interestingly, as you can see from the chart, sometimes it doesn’t:

   

  

   

  Knowing when to raise taxes and when to lower them is not easy business.

  
  

  • 10:08 pm
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