A dynamic forecast of the revenue effect of a tax rate change assumes that the tax base does not change.

Name: A dynamic forecast of the revenue effect of a tax rate change assumes that the tax base does not change.
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Question

Quizplus · Accepted Answer

A dynamic forecast takes into account the potential changes in taxpayer behavior in response to a tax rate change, which can impact the tax base. Therefore, a dynamic forecast assumes that the tax base may change.

A Dynamic Forecast of the Revenue Effect of a Tax