Question

Which Statement is correct? a. The Laffer Curve suggests that there is a tax rate that maximizes tax revenues. b. Corporate taxes are popular because they don’t affect most people c. Prior to the passage of tax reform in 2017, the effective corporate tax rate in the US was over 30% d. All of the above

Answer 1

Which Statement is correct?

d. All of the above

Reason Being:

• The Laffer Curve suggests that, as taxes increase from low levels, tax revenue collected by the government also increases.
• Corporate taxes are popular because they don’t affect most people. That is, probably most people assume that the corporate income tax is largely paid by consumers of its products or services.
• Prior to the passage of tax reform in 2017, the effective corporate tax rate in the US was over 30%. That is, Corporate tax rate was 35%, prior to the passage of tax reform in 2017.