Q: The table below describes three tax systems (A, B, and C) for three income levels. Tax system A Tax…
A: (a) Tax System A:i) Percentage of income= 2,00020,000×100=10%ii) Percentage of…
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: The idea that an increase in a tax rate generates a reduction in the tax base that makes the net…
A: Imposition of tax on a good generates tax revenue for the government
Q: A tax system based on the ability-to-pay principle claims that all citizens should A. pay taxes…
A: Ability to pay taxation:- Ability-to-Pay Taxation can be explained as a taxation philosophy which…
Q: Which is wrong? EXPLAIN a. The government should tax itself. b. The government can tax itself. c.…
A: In an economy, government is the highest ruling authority that runs the economy based on its…
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: Explain in no less than 4 sentences why Taxation is called the Lifeblood if the Government/State.
A: The charges that are being levied by the government on individuals are known as taxes. They are…
Q: Tax incidence usually falls A. only on producers. B. on both consumers and producers. C. only on…
A: Tax incidence is the division the burden of tax falls between producers and consumers. The burden of…
Q: What is the difference between an expenditure (cash-flow) tax and a sales tax? What is the…
A: Tax: It refers to the income of the government. The taxes are the income that people will pay…
Q: Suppose the government decides to raise the gasoline tax as a way to reduce air pollution and…
A: Ans in step 2
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 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: How do taxation and government spending impact the economy of a country positively in three ways and…
A: Positive impact of taxation Cutting taxes enhance demand by increasing disposable income and…
Q: Which of the following examples illustrates the "corporate income tax? Select the correct answer…
A: Corporate income tax is the tax levied by the government on the profit of the corporation.
Q: What are the characteristics of Taxes? Discuss each briefly. (Please include the references, I…
A: Taxes are the compulsory payments imposed by government on the taxpayer to collect funds for…
Q: Use information from paragraph 4 to answer the following question. Before the Progressive Era, many…
A: When talking about progressive tax, it can be said that it is the tax that is directly related to…
Q: Suppose you earn $50,000 per year and pay taxes based on marginal tax rates. The first tax bracket,…
A: a) Income = $50000 Tax rates are:- 5% for income ranges from $0 to $25000 25% for income ranges from…
Q: There once was a town where thanks to expansive fiscal policy in Washington, the town had more money…
A: In this question:- Due to expansive fiscal policy in Washington, the town had more money to fix…
Q: Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that…
A: Answer: Given: Tax rate = 17% Alice's taxable income = $29,000 Calculation of tax amount: If Mr.…
Q: Discuss how a government might use taxation to affect the distribution of income
A: In an economy, the inequality of income distribution can be explained by the situation when a richer…
Q: Use the circular flflow diagram to show how each of the following government actions simultaneously…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
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: Tax incidence refers to ? A. the average tax rate. B.how much revenue a tax generates. C.the extent…
A: The tax incidence means the division of tax burden between buyers and sellers. It refers to the…
Q: se a circular flow diagram to show how the allocation of resources and the distribution of income…
A: 1) A 2-percentage point reduction of the corporate income tax: Generate money from collecting income…
Q: 1.Suppose that the government puts a tax of 15 cents a gallon on gasoline and then…
A: Since you have asked multiple-parts questions, we will solve only the first three questions for you.…
Q: Person A earns $100,000 per year, while person B earns $45,000 per year. Which conclusion is most…
A: Below is the given values: The earning of person A = $100000 The earning of person B = $45000
Q: of a given activity. c) Economists refer to the revenue collected as a result of a tax as the burden…
A: In an economy, economists think that there are different types of tax burden when government imposes…
Q: The concept that people should pay taxes based on the benefits they receive from government services…
A: The taxes are the legal proceedings that are paid by the citizens of the country for the services…
Q: The following levels of government determine a budget each year to show how much revenue the…
A: A budget refers to a calculation of income and expenses over a defined future period of time and is…
Q: 4. Computing and interpreting average tax rates In a hypothetical economy, Clancy earns $11,000,…
A: When all taxable sources of income are combined together and divided by the amount of taxes payable,…
Q: proportional tax, sometimes referred to as a flat tax, is a kind of income tax wherein all taxpayers…
A: Proportional tax is that the taxing mechanism within which the taxing authority charges constant…
Q: According to Ibn Hazm, when zakah collection is not sufficient to satisfy the basic needs of the…
A: Answer-
Q: Compare progressive, regressive, and proportional taxes. Give at least oneexample of each type of…
A: A proportional tax is the one in which a fixed percentage of tax is imposed on the income of all the…
Q: Whichofthefollowingstatementsis(are)correct? (x) A payroll tax is a tax on the wages that a firm…
A: A payroll tax is a tax that the firm levies on workers for social security purposes. It is directly…
Q: Income tax is an example of
A: Tax is defined as a form of compulsory payment by the individual of a country to its government.…
Q: Two of the primary purposes of taxes are to fund the government and mitigate the negative effects of…
A: Taxes are described as a type of obligatory charge levied by a country's government on its…
Suppose that the government puts a tax of 15 cents a gallon on gasoline and then later decides to put a subsidy on gasoline at a rate of 7 cents a gallon. What net tax is this combination equivalent to
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- Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20 million bottles of wine were sold every month at a price of $5 per bottle. After the tax, 13 million bottles of wine are sold every month; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is ____ per bottle. Of this amount, the burden that falls on consumers is ____ per bottle, and the burden that falls on producers is _____ per bottle. (Answer all) True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.some economists have argued that corporate taxes should be eliminated and only individuals should be taxed. explain.The government is considering levying a tax of $80 per unit on suppliers of either leather jackets or smartphones. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by DLDL (on the first graph), and the demand for smartphones is shown by DSDS (on the second graph). Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($80 per jacket). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. Instead, suppose the government taxes smartphones. The following graph shows the annual supply and demand for this good, as well as the supply curve…
- Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 19 billion bottles of wine are sold every year; consumers pay $8 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is per bottle. Of this amount, the burden that falls on consumers is per bottle, and the burden that falls on producers is per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True FalseThe government is considering levying a tax of $120 per unit on suppliers of either leather jackets or smartphones. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by DLDL (on the first graph), and the demand for smartphones is shown by DSDS (on the second graph). Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($120 per jacket). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. Instead, suppose the government taxes smartphones. The following graph shows the annual supply and demand for this good, as well as the supply curve…Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 15 million bottles of wine were sold every month at a price of $7 per bottle. After the tax, 9 million bottles of wine are sold every month; consumers pay $10 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is $_______ per bottle. Of this amount, the burden that falls on consumers is $________per bottle, and the burden that falls on producers is $_______per bottle.
- Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 15,000 cases of cola were sold every week at a price of $4 per case. After the tax, 9,000 cases of cola are sold every week; consumers pay $5 per case, and producers receive $1 per case (after paying the tax). The amount of tax on a case of cola is $___ per case. Of this amount, the burden that falls on consumers is $___ per case, and the burden that falls on producers is $___ per case.How a tax burden is divided between consumers and producers is called tax incidence. Consumers bear most of the tax burden when:How can the relative levels of taxes impact relationships between states? For instance, what is likely to happen when New York (under the START-UP NY program) offers tax breaks to companies that are willing to relocate to the state? a. Generate federal government jobs b. Increase the Supreme Court's power c. Lower federal budgets d. Increase competition among states e. Increase public funding
- Beef production is known to generate a lot of methane (from the digestive system of cattle), which is harmful to the environment. If the government levies an environmental tax on beef discuss how it would affect income distribution.Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 30 billion cases of cola were sold every year at a price of $4 per case. After the tax, 23 billion cases of cola are sold every year; consumers pay $5 per case, and producers receive $2 per case (after paying the tax). The amount of the tax on a case of cola is $_________ per case. Of this amount, the burden that falls on consumers is $_________ per case, and the burden that falls on producers is $__________ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on consumers.Economists in Champaign have been studying the local market for pizza. The market is described in the graph below: If the Government imposes a tax of $3 per pizza, what will be the total government tax revenue?