High marginal tax rates do not lead to a large middle class; if this was the case, the nations with the highest marginal tax rates would also have the largest middle classes. The reality is that if marginal tax rates are adjusted to allow different countries to be reliably compared to one other, no such correlation is found.
If the statements above are all true, which of the following can properly be inferred on the basis of them?
A. Increasing a country’s marginal tax rates will not necessarily result in the growth of its middle class.
B. Reliably comparing the marginal tax rates of one country with another’s is not possible.
C. Nations with high marginal tax rates tend to restrict the growth of the upper class.
D. When countries are arranged in descending order by population, the least-populous countries generally have the lowest marginal tax rates and the smallest middle classes.
E. Nations with the highest marginal tax rates never have proportionally small middle classes.
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