One reason that tax revenue may fall when tax rates are increased is due to tax evasion , that is , the higher the tax rate , the higher the
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22.

One reason that tax revenue may fall when tax rates are increased is due to tax evasion, that is, the higher the tax rate, the higher the probability of the tax evasion and thus, lower

tax revenue. The example I used was when Canada quadrupled the tax rate on cigarettes Canadian citizens sought out to buy illegally smuggled in US cigarettes to evade the tax on Canadian cigarettes.A) TrueB) False
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