Tax revenues increase in direct proportion to increases in the size of the tax.

Name: Tax revenues increase in direct proportion to increases in the size of the tax.
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Tax revenues do not always increase in direct proportion to increases in the size of the tax due to factors like tax avoidance, changes in economic behavior, and diminishing returns at higher tax rates, as described by the Laffer Curve.

Tax Revenues Increase in Direct Proportion to Increases in the Size