Indicate how each of the following can affect tax evasion, and explain how the effect can take
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Question:
Indicate how each of the following can affect tax evasion, and explain how the effect can take place:
1. an increase in marginal tax rates.
2. a decrease in marginal tax rates.
3. a decrease in the complexity of tax codes.
4. an increase in the probability that a taxpayer’s return will be audited.
5. a decrease in the penalty for tax evasion.
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