Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 20% $2,000 A Family $50,000 4% $2,000 В Family $100,000 2% $2,000 C If all families had to pay a $2,000 tax to fund schools, which type of tax structure is this school tax? Regressive Tax O Proportional Tax Progressive Tax
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- The social security tax is 6.2 on employees income earned below 113,000. Is this tax progressive, regressive or proportional?What is deflation?You decide to work part-time at a local clothing store. The job pays $8.50 per hour and you work 16 hours per week. Your employer withholds 10% of your gross pay for federal taxes, 5.65% for FICA taxes, and 4% for state taxes. SUB PARTS TO BE SOLVED. How much is withheld per week for state taxes? What is your weekly net pay? What percentage of your gross pay is withheld for taxes? Round to the nearest tenth of a percent.
- Consider the following tax system: Tax Brackets Marginal Tax Rates 1 0 – 50,000 10% 2 50,000 – 100,000 15% 3 100,000 – 150,000 18% 4 150,000 – 200,000 25% 5 200,000 – 250,000 30% 6 250,000 + 33% Assume that a business executive receives a gross monthly salary of $225,000. i) Calculate the average and marginal tax rates that he/she has to pay. ii) If the NIS, NHT and education tax amounts due at the end of November are $3,125.00, $5,600.08, and $5,040.35 respectively, what amount in net income (after-tax income) should the business executive expect to see on his pay stub. iii) Advise the Minister on the potential benefit of eliminating progressive taxationThe two largest sources of tax revenue for theU.S. federal government area. personal and corporate income taxes.b. personal income taxes and payroll taxes for socialinsurance.c. corporate income taxes and payroll taxes forsocial insurance.d. payroll taxes for social insurance and propertytaxes.Marc Batchelor, a self-employed sales consultant, has estimated annual earnings of $307,000 this year. His social security tax rate is 12.4% up to the wage base, Medicare is 2.9%, and his federal income tax rate is 24%. How much estimated tax (in $) must Marc send to the IRS each quarter? $ ______
- Use the information in the table below to answer the questions that follow.Tax rates for individuals: 2019/2020 tax yearTaxable Income (R) Tax Payable1 – 195 850 18% of taxable income195 851 – 305 850 R35 253 +26% of the amountabove R195 850305 851 – 423 300 R63 853 +31% of the amountabove R305 850423 301 – 555 600 R100 263 +36% of the amountabove R423 300555 601 – 708 310 R147 891 +39% of the amountabove R555 600708 311 – 1 500 000 R207 448 +41% of the amountabove R708 3101 500 001 and above R532 041 +45% of the amountabove R1 500 000 Calculate how much tax an individual earning a taxable income of R425 000 per annum would pay Calculate the average tax rate of an individual earning a taxable income of R425 000 per annumSuppose you are a typical person in the U.S. economy.You pay 4 percent of your income in a state incometax and 15.3 percent of your labor earnings in federalpayroll taxes (employer and employee sharescombined). You also pay federal income taxes as inTable 2 (p. 228). How much tax of each type do youpay if you earn $30,000 a year? Taking all taxes intoaccount, what are your average and marginal tax rates?What happens to your tax bill and to your average andmarginal tax rates if your income rises to $60,000?Suppose you are a typical person in the U.S. economy. You pay 4 percent of yourincome in a state income tax and 15.3 percent of your labor earnings in federal payrolltaxes (employer and employee shares combined). You also pay federal income taxes asin Table 2. How much tax of each type do you pay if you earn $30,000 a year? Taking alltaxes into account, what are your average and marginal tax rates? What happens toyour tax bill and to your average and marginal tax rates if your income rises to$60,000?
- Indirect taxes: Definition Explain why governments impose indirect taxes. Distinguish between specific and ad valorem taxes. Draw diagrams to show specific and ad valorem taxes, and analyze their impacts on market outcomes. Discuss the consequences of imposing an indirect tax on the stakeholders in a market, including consumers, producers and the government (EVALUATE). Explain, using diagrams, how the incidence of indirect taxes on consumers and firms differs, depending on the price elasticity of demand and on the price elasticity of supply. Calculate the effects on markets and stakeholders of indirect taxesAssume an MPS of 0.2, an increase in autonomous (lump-sum) tax of $40 would lower income by a. $40 b. $160 c. $80 d. $200urgent 1.10. The US Federal System is the voting method for passing a bill intolaw. It involves 100 members of the Senate, 435 members of the Houseof Representatives, the vice president, and the president, for a total of537 voters. For a bill to pass, it must have a majority in the House, amajority in the Senate, with the possibility of the vice president breakinga tie, and the signature of the President; or if the president opposes thebill, it must have a 2/3 super-majority in both the House and Senate tooverride the veto. Otherwise the bill is defeated.Think of this as a social choice function where the alternatives areA, to pass the bill, or B, to defeat the bill. Does the US federal systemsatisfy:(a) the anonymity criterion?(b) the neutrality criterion?(c) the monotonicity criterion?(d) the decisiveness criterion?(e) the near decisiveness criterion?