ECONOMICS-W/MYECONLAB
7th Edition
ISBN: 9780134833125
Author: Hubbard
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 18.4.10PA
Subpart (a):
To determine
Effect of federal tax on distribution of income.
Subpart (b):
To determine
Advantage and disadvantage of federal income tax.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Part B: Briefly provide three reasons as to why income inequality is on the rise in Canada and the US. Secondly, briefly explain how our respective tax systems can help reduce income inequality (be specific about the type of tax you are referring to).
briefly describe income inequality in America,
Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Alice was single in the year 2016 with a taxable income of $29,000.
If the 17% flat tax proposed by Mr. Forbes had been in effect in 2016, what would Alice's tax have been?
Chapter 18 Solutions
ECONOMICS-W/MYECONLAB
Ch. 18 - Prob. 18.1.1RQCh. 18 - Prob. 18.1.2RQCh. 18 - Prob. 18.1.3RQCh. 18 - Prob. 18.1.4RQCh. 18 - Prob. 18.1.5PACh. 18 - Prob. 18.1.6PACh. 18 - Prob. 18.1.7PACh. 18 - Prob. 18.1.8PACh. 18 - Prob. 18.1.9PACh. 18 - Prob. 18.1.10PA
Ch. 18 - Prob. 18.1.11PACh. 18 - Prob. 18.2.1RQCh. 18 - Prob. 18.2.2RQCh. 18 - Prob. 18.2.3RQCh. 18 - Prob. 18.2.4RQCh. 18 - Prob. 18.2.5PACh. 18 - Prob. 18.2.6PACh. 18 - Prob. 18.2.7PACh. 18 - Prob. 18.2.8PACh. 18 - Prob. 18.2.9PACh. 18 - Prob. 18.2.10PACh. 18 - Prob. 18.2.11PACh. 18 - Prob. 18.2.12PACh. 18 - Prob. 18.2.13PACh. 18 - Prob. 18.3.1RQCh. 18 - Prob. 18.3.2RQCh. 18 - Prob. 18.3.3PACh. 18 - Prob. 18.3.4PACh. 18 - Prob. 18.3.5PACh. 18 - Prob. 18.3.6PACh. 18 - Prob. 18.3.7PACh. 18 - Prob. 18.3.8PACh. 18 - Prob. 18.3.9PACh. 18 - Prob. 18.3.10PACh. 18 - Prob. 18.3.11PACh. 18 - Prob. 18.4.1RQCh. 18 - Prob. 18.4.2RQCh. 18 - Prob. 18.4.3RQCh. 18 - Prob. 18.4.4RQCh. 18 - Prob. 18.4.5RQCh. 18 - Prob. 18.4.6PACh. 18 - Prob. 18.4.7PACh. 18 - Prob. 18.4.8PACh. 18 - Prob. 18.4.9PACh. 18 - Prob. 18.4.10PACh. 18 - Prob. 18.4.11PACh. 18 - Prob. 18.4.12PACh. 18 - Prob. 18.4.13PACh. 18 - Prob. 18.4.14PACh. 18 - Prob. 18.4.15PACh. 18 - Prob. 18.1CTE
Knowledge Booster
Similar questions
- Explain how you would create a government program that would give an incentive for labor to increase hours and keep labor from falling into the poverty trap.arrow_forwardHorizontal equity in a taxation system is the idea that Select one: a.those who earn more should pay more tax. b.everyone should pay the same amount of tax. c.all taxpayers should be treated the same. d.those who earn the same should pay the same tax. Which of the following taxation systems does not conform to the idea of vertical equity? Select one: a.A flat tax where every dollar of income is taxed at 25 percent. b.A progressive tax system. c.GST. d.A poll tax where every taxpayer pays an identical lump sum amount of $10,000 in tax.arrow_forwardGive a brief example of proportional tax systemarrow_forward
- Briefly discuss the major causes of income inequality. What factors have contributed to greater income inequality since 1970?arrow_forwardConsider an economy with the following income distribution: each person in the bottom quartile of the income distribution earns $15,000; each person in the middle two quartiles earns $40,000; and each person in the top quartile of the income distribution earns $100,000.a. What is the Gini coefficient associated with this income distribution?b. Suppose the bottom quartile pays no taxes, the middle two quartiles pay 10 percent of its income in taxes, and the top quartile pays 28 percent of its income in taxes. Two-thirds of all tax money is redistributed equally to all citizens in the form of military defense, government pensions (social security), roads/highways, and so on. The remaining one-third of tax money is distributed entirely to the poorest quartile. What is the Gini coefficient associated with this redistribution plan?Would you consider this tax and redistribution plan to be a particularly aggressive income redistribution policy?arrow_forwardUse a circular flow diagram to show how the allocation of resources and the distribution of income are affected by each of the following government actions. a. The construction of a new high school. b. A 2-percentage-point reduction of the corporate income tax. c. An expansion of preschool programs for disadvantaged children. d. The levying of an excise tax on pollutersarrow_forward
- some economists have argued that corporate taxes should be eliminated and only individuals should be taxed. explain.arrow_forwardState three ways that the government could reduce income inequality. Briefly explain how these programs would reduce inequality.arrow_forwardSean is getting ready to do his taxes. He is single and lives in New York City. Sean earned $50,000 in 2011. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2011. On Annual Taxable Income... The Tax Rate Is... (Percent) Up to $8,500 10 From $8,500 to $34,500 15 From $34,500 to $83,600 25 From $83,600 to $174,400 28 From $174,400 to $379,150 33 Over $379,150 35 Based on the IRS table, Sean calculates that his marginal tax rate is ______ (10%, 15%, 25%, 28%, 33%, 35% ) when his annual income is $50,000. Sean calculates that he owes ________ ($4,725, $4,750, $7,775, $8,625, $12,500) in income taxes for 2011. Sean then calculates that his average tax rate is __________ ( 12%, 15%, 17%, 20%, 25%) , based on the annual income level and the amount of taxes he owes for 2011. After figuring out what he owes in taxes in 2011, Sean decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStaxEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning