MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
10th Edition
ISBN: 9781337739115
Author: Tucker
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12SQ
To determine
The case of the families earning an income between $10,000 and $40,000.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Define income tax.
The government implements a negative Income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for
payments of 50%.
Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income
above $10,800 would pay a positive tax.)
Family Income Negative Tax
(Dollars)
(Dollars)
0
2,800
4,800
6,800
8,800
10,800
Total After-Tax Income
(Dollars)
A regressive tax
A. imposes a greater burden on those with higher incomes than on those with lower incomes
B. is based on the ability to pay principle
C. takes a greater percentage of the income of lower-income groups than of higher-income groups.
D. is based on the benefits received principle.
E. is considered to be the most equitable type of tax
Chapter 12 Solutions
MICROECONOMICS FOR TODAY (LL)-W/MINDTAP
Ch. 12.2 - Prob. 1YTECh. 12.2 - Prob. 2YTECh. 12.5 - Prob. 1.1YTECh. 12.5 - Prob. 2.1YTECh. 12 - Prob. 1SQPCh. 12 - Suppose each family in the United States earned an...Ch. 12 - Prob. 3SQPCh. 12 - Prob. 4SQPCh. 12 - Prob. 5SQPCh. 12 - Prob. 6SQP
Ch. 12 - Prob. 7SQPCh. 12 - Prob. 8SQPCh. 12 - Prob. 9SQPCh. 12 - Prob. 10SQPCh. 12 - Prob. 11SQPCh. 12 - Prob. 1SQCh. 12 - Prob. 2SQCh. 12 - Prob. 3SQCh. 12 - Prob. 4SQCh. 12 - Prob. 5SQCh. 12 - Prob. 6SQCh. 12 - Prob. 7SQCh. 12 - Prob. 8SQCh. 12 - Prob. 9SQCh. 12 - Prob. 10SQCh. 12 - Prob. 11SQCh. 12 - Prob. 12SQCh. 12 - Prob. 13SQCh. 12 - Prob. 14SQCh. 12 - Prob. 15SQCh. 12 - Prob. 16SQCh. 12 - Prob. 17SQCh. 12 - Prob. 18SQCh. 12 - Prob. 19SQCh. 12 - Prob. 20SQ
Knowledge Booster
Similar questions
- Describe the advantages that a negative income tax has over other programs that have the same purpose.arrow_forwardIncome amount of tax 10,000 2,000 50,000 2,000 100,000 2,000 calculate the percentage of income paid in tax. Is this an example of a progressive, regressive or proportional tax? Explain.arrow_forwardWhat effect does implementing a progressive tax system have on income inequality in a country? A. It increases income inequality. B. It has no effect on income inequality. C. It decreases income inequality. D. It first decreases income inequality, then increases it.arrow_forward
- Complete the table and answer the following questions. After-Tax Before-Tax Income Tax Rate Tax Paid Income High-Income Family $500,000 39.6% Middle-Income Family 50,000 20% Low-Income Family 20,000 10% Using the table, the ratio of a high-income family's to a low-income family's a. before-tax income is: to 1 b. after-tax income is: to 1 c. Is this tax progressive?arrow_forwardFederal income tax is (a. progressive b. proportionate (flat) c. regressive) , Social Security tax is (a. progressive b. proportionate (flat) c. regressive ) , Medicare tax is (a. progressive b. proportionate (flat) c. regressive) and sales tax is (a. progressive b. proportionate (flat) c. regressive) when comparing an income of $50,000 per year to an income of $150,000 per year.arrow_forwardConsider by $150. The average citizen there spends 90% of each additional dollar of income earned. a government that raises taxes Calculate the total change in income (Y) that will result. Carefully follow all numeric directions. Use a negative number to indicate a decrease in Y and a positive number to indicate an increase.arrow_forward
- Impact of higher taxes on labor income from now to next 5 years.arrow_forwardWhich tax is the largest source of tax revenue in the United States? personal income taxes social insurance taxes corporate profit taxes value added taxes national sales taxesarrow_forwardWhen the income tax was first proposed in 1894, it was ruled unconstitutional? True or falsearrow_forward
- Government collects the largest percentage of its revenue in which of the following ways? A) excise tax B) payroll tax C) corporate income tax D) personal income taxarrow_forwardDiscuss the key tenets of the U.S. personal income tax code. For example, our tax rates are progressive, which means that the more one earns the higher her tax rate. Do you think that this is fair?arrow_forwardThe Federal Government brings in revenue through taxation in all of the following forms EXCEPT: A. Individual Income Tax B. Capital Gains Tax C. Corporate Income Tax D. Sales and Property Taxarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax