Indicate how each of the following could impact tax evasion and explain why the effect takes place: a. An increase in MTRs. b. A decrease in MTRs. c. An increase in the complexity of the tax code. d....

Indicate how each of the following could impact tax evasion and explain why the effect takes place:

a. An increase in MTRs.

b. A decrease in MTRs.

c. An increase in the complexity of the tax code.

d. An increase in the probability that a taxpayer’s return will be audited.

e. An increase in the penalty for tax evasion.