Which of the following scenarios is not consistent with the Laffer curve?
A)The tax rate is very low,and tax revenue is very low.
B)The tax rate is very high,and tax revenue is very low.
C)The tax rate is very high,and tax revenue is very high.
D)The tax rate is moderate (between very high and very low),and tax revenue is relatively high.

Question

Quizplus · Accepted Answer

The Laffer curve suggests that at very high tax rates, tax revenue will decrease due to decreased economic activity and tax avoidance, so high tax rates with high revenue is inconsistent.

Which of the Following Scenarios Is Not Consistent with the Laffer