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Option 1 : When the tax rates are low, people do not tend to evade taxes.
The above statement says that lower tax rates generate higher returns. Option 2 cannot be right as it does not give a logical reason for its claim. Both option 3 and 4 also cannot be right since they state how tax payers feel about the particular tax rates without giving any reason for the problem above. Option 5 makes an assumption without any basis, so it cannot support the above statement. Whereas option 1 gives a logical reason as to why lower rates get better returns for people do not evade taxes when the tax rates are low. Hence, option 1 is the right answer.
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