What is meant by a progressive tax? A regressive tax? A proportional tax? Comment on the progressivity or regressivity of each of the following taxes, indicating in each case where you think the tax incidence lies: (a) the Federal personal income tax; (b) a 4 percent state general sales tax; (c ) a Federal excise tax on automobile tires; (d) a municipal property tax on real estate; (e) the Federal corporate income tax; (f ) the portion of the payroll tax levied on employers.

Q: 1. Suppose the marginal or bracket tax rate for income from $1 to $15,000 is 12%, the marginal tax…

A: A progressive tax is a tax/duty wherein the expense rate increments as the available income/taxable…

Q: Suppose the tax rate on the first $10,000 income is 0; 10 percent on the next $20,000; 20 percent on…

A: Tax rate:For first 10,000=0%10000-30000=10%30000-50000=20%50000-80000=30%80000 and above=40%

Q: Assume that the federal government replaces the federal income tax with a national sales tax on all…

A: A federal income tax is the tax system where the incomes of individuals, firms, other companies are…

Q: Suppose that a central government levies a new tax called “garbage tax” on all households of the…

A: Taxes are the required payments to the government without expecting any direct return or profit.…

Q: The FICA tax is levied on employers, employees, and certain self-employed individuals. Revenue goes…

A: As given in the question, the contribution to the retirement part tax was 6.2 percent of first…

Q: Federal payroll taxes to fund the EI program are levied at a combined rate of 1.58 percent up to an…

A: There are usually three kinds of taxes that are levied by the state  Progressive tax - This is the…

Q: Which of the following is a significant revenue source for state and local governments, but not the…

A: Taxes are the amount charged by the government for the services provided and are the means of…

Q: Solve the attachment

A: The incidence of tax or tax burden refers to when the tax payment is shared by both a seller and a…

Q: 10. Understanding marginal and average tax rates Using the information provided on the income tax…

A: A marginal tax rate is an increase in tax liability with an increase in per-unit income. The…

Q: Indirect taxes: Draw diagrams to show specific and ad valorem taxes, and analyze their impacts on…

A: Answer: (1).  Specific indirect taxes: it refers to the per-unit tax imposed on each unit sold.…

Q: The nation of Upstandia uses kroner for money and its tax code is such that a person making 100,000…

A: There three main tax systems in an economy – Proportional Tax, Progressive Tax and Regressive Tax.…

Q: Contrast the benefits-received and ability-to-pay principles of taxation. Which of the following…

A: Since you have asked multiple questions, we will answer only first question for you. If you have any…

Q: Discuss the consequence of a rise in direct taxes to the economy as a whole

A: Taxes: The direct tax included the income tax that is levied on the income of an individual. Income…

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

A:

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

A: From $0 to $10,000 the tax rate is 0%. So, the tax payment can be calculated as follows: Thus, the…

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A: Cigarette tax is an excise tax  Excuse taxes are specific taxes required on goods and services like…

Q: What is the relative importance of taxation to the economy of the country? Discuss clearly the…

A: A tax is a governmental organization's mandatory financial payment or other forms of levy levied on…

Q: Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to…

A: Marginal tax rate and average tax rate formula can be written as follows:

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: Consider the following to tax schemes: In the first tax scheme the first 300$ is tax exempt and the…

A: The measures of tax progressivity is when the burden of tax rises with the rise in income.…

Q: Which of the following is an indirect tax? 1. Capital Gains Tax 2. Excise Duty 3. Wealth Tax 4.…

A: A direct tax is one that is paid directly to the institution that imposed it. Individual taxpayers,…

Q: Which of the following best describes a progressive tax system? It redistributes income from lower…

A: Progressive tax system is a system where people with higher incomes be higher taxes and people of…

Q: Which of the following is not a determinant of the optimal size of governmen The consumer's…

A: Various debates are taken by various economist from time to time to find the optimal size of…

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: ) the market shown in panel (a) B) the market shown in panel (b)

A: ‘Tax burden’ is also known as ‘tax incidence’. It indicates the division of tax between buyers…

Q: Who gets most of the burden of the tax when demand condition is D1 and what is the tax burden? *…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

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

A: Tax is a compulsory payment that is imposed by the government either directly or indirectly on the…

Q: When government tax policy requires Nathan to pay $30,000 in taxes on annual income of $300,000 and…

A: Given that the tax payer Nathan has to pay $30,000 in taxes on annual income of $300,000. On the…

Q: Indicate True or False for all: 1. Under proportional taxation, as a person’s taxable income…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: The largest source of revenue for the federal government is ? A.corporate income taxes. B. the…

A: The largest source of revenue for the federal government is Individual income taxes.

Q: Suppose there is a bill to increase the tax on cigarettes by $1 per pack coupled with an income tax…

A: When the price of a good increase, its quantity demanded decreases. The imposition of tax leads to…

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: Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 a.…

A:

Q: 4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate…

A: d.The tax is the unilateral payment that the individuals should make to the government for various…

Q: A country is using a proportional tax when Group of answer choices its marginal tax rate equals its…

A: In a market, a government has alternative ways to impose taxes on the participants. The government…

Q: Explain the relationship between changes in the economic structure of direct tax revenues!

A: For developing and emerging economies,  a sufficient amount of tax revenues are a necessity for a…

Q: TRUE or FALSE and EXPLAIN The corporate income tax is a progressive tax because profits from…

A: Tax can be considered as the contributions made by the public toward government expenditure. It is…

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…