When the top marginal tax rates were lowered substantially during the 1980s, the inflation-adjusted income tax revenue collected from the top 1 percent of all income earners
A) declined sharply.
B) remained approximately constant.
C) increased substantially.
D) did none of the above.

Question

Quizplus · Accepted Answer

The reduction in top marginal tax rates during the 1980s led to increased economic activity and income growth, resulting in higher inflation-adjusted income tax revenue from the top 1 percent of earners.

When the Top Marginal Tax Rates Were Lowered Substantially During