davidsanton

2002/II/42
Suppose the government of an economy cuts the salaries tax allowance by 10% while both the wage rates and the general price level in the year fall by 5%. It follows that

A. 　the tax revenue would increase.
B. more people would fall into the tax net
C. the real income of people before tax would generally increase.
D. the ratio of people's tax payment to their nominal income would generally decrease.

why B?

sheepwish

因為tax allowance 少了10%, 而people's salaries 只下降5%, 那麼當然是B...我認為