$$Yes$,$ it is possible because there are two components in computing a$$ taxpayer's tax, the tax base and the tax rate. Taxes can be raised by increasing either component.$$ Thus, even though the Governor proclaimed that tax rates have remained at the same$$ level, adjustments to the tax$$ base, such as the elimination of$$ deductions, result in tax increases which can be as$$ much, or$$ more, as increases in tax rates.

B$.$

$$No$,$ it is not possible because taxes can only be raised by increasing the tax rate.$$ Therefore, the$$ Governor's statement that the tax rates have remained at the same level is incorrect since taxes did increase.

C$.$

$$Yes$,$ it is possible because there are two components in computing a$$ taxpayer's tax, earned income and the tax rate.$$ However, taxes can only be raised by increasing earned income.$$ Thus, even though the Governor proclaimed that tax rates have remained at the same$$ level, adjustments to earned$$ income, such as the elimination of$$ deductions, result in tax increases which can be as$$ much, or$$ more, as increases in tax rates.

D$.$

$$Yes$,$ it is possible because there are two components in computing a$$ taxpayer's tax, the tax base and the tax rate.$$ However, taxes can only be raised by increasing the tax base.$$ Thus, even though the Governor proclaimed that tax rates have remained at the same$$ level, adjustments to the tax$$ base, such as the reduction of$$ exemptions, result in tax increases which can be as$$ much, or$$ more, as increases in tax rates.