Giving firms property tax benefits is the most effective way of lowering taxes and increasing income. As a result, option (A) or (i) is the correct response.
Tax breaks can stimulate the economy by raising the amount of money available to spend by taxpayers and increasing the amount of money available to businesses to invest in their expansion.
Every reduction in tax rates results in less revenue for the government, but it also puts more money in the hands of taxpayers, so boosting their discretionary income.
Long-term, business activity rises, companies hire more people, who then spend more, resulting in economic expansion.
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