Assume that the federal government replaces the federal income tax with a national sales tax on all consumption expenditures. Analyze the impact of this tax change on taxation efficiency and equity? Note that the federal government already collects a nationwide consumption tax through excise taxes on gasoline, liquor and tobacco.

Q: Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 30 billion…

A: here we calculate the given by following method as below;

Q: following is not regarded as part of fiscal policy Select one: a. Increased taxation b. Decreased…

A: Fiscal policy is a policy through which a government, in turn, adjusts its rates of taxation and…

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: If a 10 cent tax is imposed on a supply curve with the function Qs = P - 2, the function…

A: supply is defined as the quantity of goods that the producers decide to sell in the market at any…

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: According to the textbook, which of the following statements is (are) correct? (x)  Taxes on…

A: Tax revenues are collected by the government to undertake government activities such as…

Q: A2) Economics Explain the importance of taxation which has been aptly considered one of the three…

A: Taxes are levied by the government on individuals in the economy for no immediate benefit. Taxes are…

Q: Question 1 Which of the following economic policies is more Expansionary: O An increase in both…

A: Expansionary economic policy is an economic policy in which the government tends to increase the…

Q: Optimal fiscal federalism refers to A.the optimal distribution of property taxes across local…

A: Sometimes there isn't optimal provision of public goods by the local government for which the…

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: According to studeis undertaken by the U.S. Department of Agriculture, the price elasticity of…

A: Because of increase in price of cigarettes,consumption of cigarettes would decrease. Because price…

Q: Introduced by the Makabayan Bloc on 20 September 2021, House Bill No. 10253 or the Super Rich Tax…

A: This question is based on the Super Rich Tax Act of 2021.

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: 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…

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: The fact that lower-income families will spend a higher percentage of their income on tangible goods…

A: Taxation system refers to the way of taxing the income of people by the state government or central…

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: Critically evaluate the impending rise of sales tax planned by the Japanese government and its…

A: The authorized (GDP) gross domestic product sculpture though was more diminutive than the 7.1% drop…

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: Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony…

A: Each citizen must pay 10% in taxes on their first $10000 in earnings and then 50 % in taxes on…

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: In 2018, the Government of the Federated Republic of Coconut Islands had a budget surplus of $20…

A: Budget = Tax revenue - Government expenditure +20 = tax revenue -324 Tax revenue = 344

Q: How will the imposition of a fiscal policy for an increase in import duties on vehicles impact…

A: When the government increases import duties on vehicles then these vehicles will become costly in…

Q: 1. Consider an economy with the initial equilibrium income level of $1000 and the consumption…

A: In an closed economy the equilibrium level of income is the sum of total expenditure incurred by the…

Q: 02. Referring to Fig 2d and the attached table, determine whether average pre-tax income of the top…

A: A theory that describes a tradeoff relationship between tax cuts and tax revenue is the Laffer Curve…

Q: Identify whether each of the following taxes is progressive or regressive and indicate in each case…

A: 1. The Federal Personal Income tax is” progressive, and the incident is on the taxpayer” As income…

Q: Average Tax Rate Tax Revenue ($B) 20% $250 40 300 60 250 80 200     Refer to the table. If the…

A: Given that the current tax rate is 60%, the tax revenue is $250. In order to increase the revenue,…

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

A: 0−10,000 = No tax    10,000 − 20,000 = 20%    20,000 − 30,000 = 30 %    > 30,000  = 40%

Q: C = 450 + 0.4Y  I = 350  G = 150  X = 70  Z = 35 + 0.1Y  T = 0.15Y  Yf =  1550 Q.2.5  Calculate…

A: equilibrium in Keynesian model where the aggregate demand equal the aggregate income

Q: The incidence of a tax: - refers to who writes the check to the government.   - is a measure of the…

A: In Economics, incidence of tax explains which party ultimately bears the burden of tax. It expalins…

Q: In the market for a good, the aggregate demand and supply are summarized by the following…

A: Given Aggregate demand  Qd (p) = 20−p  and supply Qs (p) = 2p−4  government charges a per-unit tax…

Q: Figure 4-11 LAFFER CURVE 100 в Tax Revenue Refer to Figure 4-11. On the Laffer curve shown, tax…

A: The Laffer curve illustrates the relationship between the tax rate imposed by the government and the…

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: Which of the following economic policies is more Expansionary: An increase in both government…

A: Monetary policy alludes to the moves that governments make in the financial field. These by and…

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: Consider the following consumption function: C (Y)=0.8(Y-T) where Y represents income and T…

A: We know that an economy is in equilibrium when: Y = C + I + G  Hence we put values and get the Y to…

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: Which of the following statements is correct?     A decrease in the size of a tax always decreases…

A: Deadweight loss refers to the situation where the increase in price reduces the total surplus in the…

Q: What is the effect of an increase in taxes when the economy is above full​ employment? What is the…

A: The aggregate demand curve or AD curve shows different combinations of price and output where both…

Q: Refer to the photo below. What is the equilibrium level of income for this economy if Y = C + I + G…

A: The aggregate expenditure would be equal to the output in the Keynesian model. The Keynesian model…

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: the following information: QD= 240-5P QS= P Where QD is the quantity demand, QS is the quantity…

A: GIVEN,  QD=240-5PQS=P where QD is the quantity demand QS is the quantity supplied govt. imposes $12…

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…