A-level Paper 2, November 2020The National and Global Economy

A-level Paper 2, November 2020, Q7

Evaluate the likely impact of cutting tax rates as a policy to increase economic growth.

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Context

In 2018, the United States Government cut the corporation tax rate (tax on company profits) from 35% to 21%. Income tax rates for US citizens were also reduced: for example, the top rate of income tax was cut from 39.6% to 37%.

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