What Happens If a Government Reduces a High Tax Rate

Multiple Choice

What happens if a government reduces a high tax rate

A) Reducing a high tax rate is less likely to increase tax revenue than reducing a low tax rate.
B) Reducing a high tax rate is more likely to increase tax revenue than reducing a low tax rate.
C) Reducing a high tax rate will have the same effect on tax revenue as reducing a low tax rate.
D) Reducing a tax rate can never increase tax revenue.