Taxation is viewed as (i) governments cannot function well without them; (ii) having a long history in association with religion; (iii) a national election tool. Which of the following is correct? O A. All alternatives (i) to (iii) are true. O B. Only alternative (iii) is true. O C. Only alternative (ii) is true. O D. Only alternative (i) is true.
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- Some finance experts advise consumers not to worry aboutrising gasoline prices, the cost of which can easily be coveredby forgoing one takeout meal a month, but to worry abouthow high energy prices will affect the rest of the economy. Forexample, each dollar-a-barrel price increase is equivalent toa $20 million-a-day “tax” on the economy. Explain what thismeans.4. Capital MThe country of Aquilonia has a tax system identical to that of Canada. Suppose an Aquilonian bought a parcel of land for $10,000 in 1960 when the price index equalled 100. In 2019, the person sold the land for $100,000, and the price index equalled 500. If the person must pay 20 percent of any capital gain in taxes, what is the after-tax real capital gain (in 2019 dollars) on the land? a. $72,000 b. $32,000 c. $6400 d. $62,000Being a legislative in nature, the power to tax may not be delegated excepta. To local governments or political subdivisionsb. When allowed by constitutionc. When delegation related merely to administrative implementation that may callfor some degree of discretionary powers under a set of sufficient standardsexpressed by law or implied from the policy and purpose of the act.d. All of the above Which theory in taxation states that without taxes, a government would be paralyzed forlack of power to activate and operate it, resulting in its destruction?a. Power to destroy theoryb. Lifeblood theoryc. Sumptuary theoryd. Symbiotic doctrine
- 1 a- Why do you think we should use taxation as a redistribution tool in a country? b- Show and explain the effects of government borrowing regarding Ricardo’s Equivalence Theorem and give the main arguments against this theoremQuestion 4Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang and Smith families value the road at $900 each and the Hudson family values the road at $700. The cost to pave the road is $2,400. Would a proportional tax or headcount tax policy be passed? O a. Only the headcount tax would pass.O b. Neither would pass.O c. Only the proportional tax would pass.O d. Yes, both would pass. Note: correct answer is option a) how?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?
- A: What are the three fiscal policy tools? B: How would change each tool if your goal was to reduce unemployment? C: How would you reduce each tool if your goal was to reduce inflation? D: Supply shocks cause both unemployment and inflation to increase. Given the results in B and C can fiscal policy be used successfully to reduce both inflation and unemployment at the same time? Explain!Discuss thoroughly two of the principles often used inevaluating tax policy: ability to pay (includehorizontal and vertical equity), and the benefits principle. Canthese principles typically be satisfied simultaneously? Why or why not? Provide an example of a tax policy orinstrument which primarily emphasizes the “ability-to-pay”principle and also an example which primarily emphasizes the“benefits” principle.1. Determine burden of the tax under different demand conditions (i.e., when demand is D 1 andwhen demand is D 2 ). Who gets most of the burden of the tax under different demandconditions?2. Prove that the increase (or change) in the price is dependent on the elasticity of demandand supply, under different demand conditions (i.e., when demand is D 1 and when demandis D 2 ).3. What tax revenue is expected by the government if the demand for cigarettes is D 1 ? Is D 2 ?
- 1. Though the tax structure (i.e., the tax base and rates) has much to do with the equity effects of taxation, its administration could also strengthen or weaken its fairness. If the tax administrator practices discretion in the grant of deductions, there is a. Regressive equity b. Progressive equity c. Vertical equity d. Horizontal equity 2. The potential of the income tax as a tool to enhance the equity of the tax system brings to the fore the importance of designing the scheme of income taxation in accordance with acceptable norms and principles such as allocating costs or burdens to the people. This is known as the: a. Non-compensation or set-off b. The Lifeblood Doctrine c. Marshall doctrine d. Ability to pay approach3. An egalitarian society normally is prejudiced towards a tax system which puts a heavier burden on those who have the greater ability to pay. An equitable tax is taken as one which promotes the unequal tax treatment of unequals. The tax must be so…If the government were to try to offset surplus years with deficit years over the business cycle, this would result in O A. a reduction in investment capital. O B. a higher debt-to-GDP ratio. OC. an annually balanced budget. O D. a structurally balanced budget. O E. a cyclically balanced budget.MILLER - "A $1,000 tax paid by a poor person may be a larger sacrifice than a $2,000 tax paid by a wealthy person" is an argument in favor of OA) the horizontal equity principle. B) the ability-to-pay principle. a regressive tax argument. D) the benefits-received principle. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.