Explain relationship between tax rate and tax revenue

Assignment Help Taxation

Reference no: EM13826962

Problems:

1. Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

2. Using the ‘human capital' investment model, analyse the ways in which increases in university fees will affect participation in higher education for students with different abilities and students from different backgrounds. How will loans affect this?

3. If incentive contracts are really effective, why do so many workers receive flat rates of pay?

Additional Information:

The essay answers the above three problems by explaining the relationship between tax rate and tax revenue through the Laffer curve.

Word Limits: 2000

Reference no: EM13826962

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