What is Revenue Neutral Rate?
A. Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws.
B. Taxing procedure that allows the government to still receive the higher amount of money despite no changes in tax laws.
C. Taxing procedure that allows the government to receive the lower amount of money despite changes in tax laws.
D. Taxing procedure that allows the government to receive the higher amount of money despite no changes in tax laws.
Answer:A
What is Revenue Neutral Rate?
A. Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws. B. Taxing procedure that allows the government to still receive the higher amount of money despite no changes in tax laws. C. Taxing procedure that allows the government to receive the lower amount of money despite changes in tax laws. D. Taxing procedure that allows the government to receive the higher amount of money despite no changes in tax laws.
Explanation: Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws. The government may lower taxes for one particular group of people, but raise taxes for another group. This allows the revenue that they receive to remain unchanged (neutral).