The 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. $62,000

Q: Explain the benefit principle and ability to pay approach with regard to tax equity. Which approach…

A: Benefit principal theory of taxation - In this theory citizens of a country are asked to pay tax…

Q: C = 1,600 + 0.8(Y – T)                         I = 1000                         G = 1,800…

A: C = 1,600 + 0.8(Y – T) I = 1000  G = 1,800                 X = M = 0 T =  3,000 + 0.01Y

Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

A: Debt-to-GDP ratio is defined as a metric which compares a nation's public debt to its GDP. It…

Q: Consider a closed economy in which there are two groups of households: the rich and the poor. The…

A: In the Keynesian cross, the expenditure in an economy decides level of the output or employments.…

Q: (1) Tax system contributes to reduce inequality and control consumption-Explain in your own words.

A: Government levies taxes on consumers to generate resources to provide public goods like defence,…

Q: In 1998, the government reduced its debt by $40 billion and it spent $420 billion. How much tax…

A: The tax revenue received by the government includes the debt reduced by the  government and the…

Q: Refer to Table 27-1. What is the level of tax revenues in this model?   a. 1,000   b. 937.5   c.…

A: Answer to the question is as follows :

Q: Tax is one of the most prominent sources of income of the Government. Government of India designs…

A: It is the primary responsibility of Government and central bank to control the financial and…

Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

A: The debt-to-GDP ratio is the percentage of a country's debt to its GDP. It is used to measure a…

Q: 03. Referring to Fig 2d and the attached table, determine whether average federal individual income…

A: A recession is the economic condition which brings contraction in the economic activities through…

Q: Illustrate the concept of Ricardian equivalence using the demand and supply of financial capital…

A: Ricardian equivalence: The theory says that the consumption of an individual or family’s rate of…

Q: Assume that in year 1 you pay an average tax rate of 15 percent on a taxable income of $25,000. In…

A: Tax is the fee or a charge that is imposed by the government on individuals or firms. There are two…

Q: Exit tax’ to hit South Africans looking to emigrate from 2022 When ceasing their South African tax…

A: The 2021 Draft Tax Bills distributed proposed to present a tax on retirement interests of the people…

Q: Suppose that currently, the South African economy is in an expansionary phase. The proposed “Exit…

A: * ANSWER :-  * The OPTION A (Keynesian theory) is correct answer. * Explanation :-  Keynesian…

Q: Kelly’s taxable income is $110,000. Approximately what percent of her taxable income is her tax?…

A: Kelly's Taxable Income is $110,000 Kelly's Taxable Income is between 43,650 or 112,650 where tax is…

Q: Why do you oppose the taxation of purchasing NFTs? Infoslide: An NFT, which stands for non-fungible…

A: A digital asset that depicts real-world elements like as art, music, in-game items, and films is…

Q: 1. This kind of tax is derived from the individuals, corporate estates, and trusts income. A.…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: What is a progressive income tax?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Read the following and answer question? ‘Exit tax’ to hit South Africans looking to emigrate from…

A: *Answer:  Keynesian economics propose government intervention when there is a positive or negative…

Q: which of the following statements are true , give reason why the others are false 1. When the…

A: In a market, different types of taxes are imposed in different markets for different commodities…

Q: To raise revenues during the recent recession, the governor of your state proposed the following…

A: Formula:  N(I) = income - (tax rate * income)

Q: Where does the federal government obtain almost all of their revenue?     foreign governments…

A: Government revenue is the income available to fund the activities of a government.

Q: Which of the following income received by an individual from a corporation cannot be apportioned…

A: Hong Kong takes on a regional source standard of taxation.  Benefits sourced somewhere else are not…

Q: What is meant by a progressive tax? A regressive tax? A proportional tax? Comment on the…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: Which of the following, regarding debt and growth, is false?    a. If there is no (nominal) GDP…

A: a-Central banks can support development by cutting loan costs, which (in principle) prompts simpler…

Q: (a) “Anticipated technological improvements will reduce the size of bequests that parents leave to…

A: Since you have asked a multipart question and according to our policy we can only solve the first 3…

Q: Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on…

A: The above country is following a progressive tax structure.

Q: Does the existence of credit market imperfections imply that there is a useful role for government…

A: Credit market imperfections means the financial market with low quality of information about the…

Q: Referring to Fig 2d,is it reasonable to infer that pre-tax income is a more important determinant of…

A: Tax refers to the compulsory charges levied by the government on its citizen and the citizen. The…

Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

A: In economics, the debt-to-GDP ratio is the proportion of a country's debt to its gross domestic…

Q: The Swedish Fiscal Policy Council discusses public debt policy in a low interest environment in…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Explain the benefit principle and ability to pay approach with regard to tax equity. Which approach…

A: Benefit principal theory of taxation - In this theory citizens of a country are asked to pay tax…

Q: There are two individuals in a society. The federal income tax in this society is such that that the…

A: Progressive taxation means the tax rate is lower for low-income groups and higher for high-income…

Q: Ofthe following, which will most determine whether the calculation of expected future revenues from…

A: Disclaimer: Since you have asked multiple questions, we will answer the first one for you. If you…

Q: In addition to issuing bonds, explain any two major ways the government can raise revenue to finance…

A: In n economy, financing government debt is necessary to reduce the burden of future generation and…

Q: Based on the IRS table, Jake calculates that his marginal tax rate is _ when his annual taxable…

A: Answer; The marginal tax rate is the tax rate corresponding to the tax bracket in which the income…

Q: All the following are good reasons for retirement plans except:   a. tax brackets   b. marginal…

A: The retirement saving amount would be exempted from the tax. The tax system that allows a person to…

Q: A4 Consider a linear income tax system in which one’s tax owed to government, T, depends on one’s…

A: Answer: Given, Tax equation: T=a+tIWhere, a=constantI=incomet=tax rate

Q: P B 24. Which of the following is a regressive tax? A Property tax. B. Federal Income tax. C. State…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Income Tax rates will be changed to the following Marginal Tax Rates given by: T(I) = 40*I2/ I2+1000…

A: Marginal tax rate refers to the tax rate that imposed on the last dollar of income.

Q: Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal…

A: New level of gross national debt can be calculated as follows: Thus, the new level of national debt…

Q: Suppose a tax is such that an individual with an income of $10,000 pays $2,000 of tax, a person with…

A: Taxes is the compulsory payment levied on the citizens by the government. The tax is said to be…