High tax rates on interest and profits are disincentives. People may engage in “do it yourself” projects rather than paying someone to do the work, if they have to pay taxes on the services. People may not work overtime or second jobs if pushes them into higher tax bracket
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- Match the term and the definition: flat tax Places heavier burden on poor than on rich as your income increases, the percentage that you pay increases A. Progressive taxes B. Proportional taxes C. Regressive taxesWhat does the research and experimentation tax credit do? It offers a tax benefit to individuals who work in research and development. It offers firms a tax reduction depending on how much research and development they do. Generates significant tax revenue for the federal government. It offers firms a tax reduction depending on hiring of scientific and technical personnel.Select the correct one : Q-1) President Biden wants to increase the estate tax (the tax on wealth when a person dies) from 23.8% to 43.4%. a) The increase would lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences. b) The increase would lead to no change in revenue over time but less income inequality stemming from a fairer tax code. c) The higher tax would reduce the problem of scarcity for all working poor people. d) The increase would be an economically inferior solution to reducing income inequality. In fact, lower taxes – even on the rich - tends to help the poor more. e) B and D only.
- “The Prime Minister claims that funding the increase in NHS and social care spending by national insurance [paying higher NICs] is preferable, because firms pay part of the cost. This is a fiction. In the long run the burden of payroll taxes, even those paid by companies, falls on workers, whose wages fall as their employers’ tax bills rise.” The Economist 11-09-202. Is “The Economist” right in its counter-claim? (Hint: use a market equilibrium model of demand and supply for labour)[Basic static analysis of tax] Draw a simple model of the retail market for petrol in Australia. Petrol is taxed in Australia (and in most other countries). Evaluate the welfare consequences of a tax on petrol. Is this an example of government failure or a consequence of market failure?Question 1 Assume no Washington income tax, and Washington has a $4M grant to spend. Zoe Wu tells the mayor that a means-tested program would allow the poor to get more money. She suggests that benefits should be redunced by $10 for each $100 in workers’ pre-tax income. Suppose the guarantee rate is G. How much benefit would each group get at their original income (working 40 weeks) in terms of G? 2 2. With the $4M grant, how large can G be? How much benefit does each group get? What is the maximum income in the phase-out region? Draw the benefit schedule with labels. Suppose the government could identify workers’ type and sent them money equal to your answer in part (b), regardless of their labor supply choice. (a) What is the percentage change in workers’ wealth, the dollar value of their time plus unearned income? (b) How many weeks per year would each type work using the elasticity of η = −0.1? Compare your answer to 4(d). Explain why they are similar or…
- What does the research and experimentation tax credit do? Group of answer choices A)Generates significant tax revenue for the federal government. B)It offers a tax benefit to individuals who work in research and development. C)It offers firms a tax reduction depending on hiring of scientific and technical personnel. D)It offers firms a tax reduction depending on how much research and development they do.PLEASE ANSWER C Economics of Education. The issue of education is quite critical. The demand for education by society is high.On the other hand, it is demanded that the schools only charge low tuition fees since schools serve a socialfunction. Thus, more often than not, tuition fee ceilings are imposed to assure students of lower prices for this“commodity”. Two common solutions are proposed to address the likely problem of excess demand foreducational services (ES) in the event of a tuition fee ceiling is imposition: (i) operation of public schools (e.g.,free public high school); (ii) government subsidy to private education.Find the solutions to the problems below: where:D = demand for educational servicesS = supply of educational servicesTF or P = tuition fee or price of education (‘000 pesos)Q = quantity of educational services expressed in ‘000 studentsavailing themselves of such servicesSuppose we let: S: TF or P = 1 + 0.5 QD: TF or P = 15 – 2Qa. Solve for the equilibrium price and…Reduction and elimination of corporate income taxes (CIT) and the economic result: Examples from North Carolina and Ohio The corporate income tax (CIT) is levied by federal and state governments on business profits, which are revenues (what a business makes in sales) minus costs (the cost of doing business). State-level corporate income tax rates vary across the country. Six states (Nevada, Ohio, South Dakota, Texas, Washington, and Wyoming) levy no corporate income tax, while the remaining states and the District of Columbia do tax corporate profits. Note: Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. Lowering the CIT: North Carolina North Carolina’s tax environment is one of the nation’s most competitive. As of 2021, the state boasted the nation’s third-lowest effective tax rates for newly established firms and fifth-lowest rates for mature firms. Just eight years ago, North…
- Mustafa earns 72,000 TRY in a year. Assume that he has 8,000 TRY tax exemption. The following figure shows the marginal tax rates for different income intervals.a) Calculate total tax payments of Mustafa.b) Calculate average tax rate for Mustafa.Choose the Letter of the Correct Answer. 1. It is an act of laying a tax. A. Theory of tax B. Taxation C. Taxing D. Tax 2. A tax imposed by the government at each stage in the production of goods. A. Excise B. Value –added tax C. Property D. Individual tax 3. A tax imposed for the general purposes of the government to raise revenue for the local area needs. A. National B. Municipal C. Community D. Local 4. It is sanction imposed as a punishment for violation of law or acts deemed injurious. A. Tax B. Penalty C. Fine D. Debt 5. This kind of tax is derived from the individuals, corporate estates, and trusts income. A. Income tax B. Capital gains tax C. Donor Tax D. Estate taxSuppose the demand curve for pizza can be represented by the equation QD = 20 - 2P. The supply curve for pizza can be represented by the equation QS = P - 1. Calculate and show the effects of a $1.5 tax per pizza. (Hint: ΔP, tax burden, ΔQ, ΔCS, ΔPS, ΔTS, ΔT)