President Biden proposed increasing the corporate tax rate from 21% to 28%. However, this reform has been hard to pass in the Senate. Imagine he asks you to predict revenue changes as a result of a lower increase in the corporate tax (from 21% to 24%). What kind of basic information would you need to make such predictions?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST1: Government Spending And Taxation
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President Biden proposed increasing the corporate tax rate from 21% to 28%. However, this reform has been hard to pass in the Senate.

Imagine he asks you to predict revenue changes as a result of a lower increase in the corporate tax (from 21% to 24%). What kind of basic information would you need to make such predictions?

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