what-are-the-potential-negative-effects-of-increasing-taxes-beyond-the-optimal-p

Question

What are the potential negative effects of increasing taxes beyond the optimal point on the Laffer Curve?

Accepted Answer

Decreased tax revenue and reduced economic activity.

Answer

No change in tax revenue or economic activity.

Answer

Increased tax revenue and enhanced economic activity.

Answer

Increased tax revenue with no impact on economic activity.