Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 13

Which statement explains why a government decides to increase the highest rates of tax on personal income?

1. AIt expects total tax revenue to be unaffected by the policy change.
2. BIt is concerned about the possibility of emigration by some high earning individuals.
3. CIt regards equity considerations as being more important than efficiency ones.
4. DIt wishes to switch the emphasis of its tax system from direct to indirect taxation.

As printed in the paper