Microeconomics: Principles Problems & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660727
Author: McConnell
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 3RQ
To determine
Which among the options is an example of regressive taxation .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The nation of Upstandia uses kroner for money and its tax code is such that a person making 100,000 kroner per year pays 40,000 kroner per year in income taxes; a person making 200,000 kroner per year pays 70,000 kroner per year in income taxes; and a person making 300,000 kroner per year pays 90,000 kroner per year in income taxes. Upstandia’s income tax system is: a. Progressive. b. Regressive. c. Proportional.
Ann pays $3,850 in taxes on an income of $38,500. Therefore her proportional tax rate is undefined. taxes must be progressive in nature. marginal tax rate must be 10 percent. average tax rate must be 10 percent.
When government tax policy requires Nathan to pay $30,000 in taxes on annual income of $300,000 and John to pay $18,000 in tax on annual income of $100,000, then the tax policy is:
Group of answer choices
optional.
progressive.
regressive.
proportional.
Chapter 18 Solutions
Microeconomics: Principles Problems & Policies (McGraw-Hill Series in Economics)
Knowledge Booster
Similar questions
- ‘Exit tax’ to hit South Africans looking to emigrate from 2022When ceasing their South African tax residency, taxpayers are subject to an ‘exit tax’ which forms part of the emigration process.However, the National Treasury has proposed a further tax on those who intend to permanently leave South African shores, say tax experts at specialist advisory firm Tax Consulting SA.“In the National Treasury’s latest published Draft Tax Bills, which incorporates the tax proposals made in the 2021 budget, the amendment proposes to tax retirement fund interests of individuals when they cease South African tax residency,” the firm said. Suppose that currently, the South African economy is in an expansionary phase. The proposed “Exit tax” by the National Treasury would resemble which of the following macroeconomic schools of thought?a) Keynesian theoryb) Classical theoristsc) Marxist economicsd) Monetarist economicsarrow_forward‘Exit tax’ to hit South Africans looking to emigrate from 2022When ceasing their South African tax residency, taxpayers are subject to an ‘exit tax’ which forms part of the emigration process.However, the National Treasury has proposed a further tax on those who intend to permanently leave South African shores, say tax experts at specialist advisory firm Tax Consulting SA.“In the National Treasury’s latest published Draft Tax Bills, which incorporates the tax proposals made in the 2021 budget, the amendment proposes to tax retirement fund interests of individuals when they cease South African tax residency,” the firm said. If enforced, the above proposed “Exit tax” will impact which of the following national totals when South Africans migrate as opposed to there being no exit tax?a) Gross domestic productb) Gross national productc) Net domestic productd) The budgetarrow_forwardSuppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on earnings between $10,001 and $20,000 and a 30 percent tax on income between $20,001 and $30,000. Any income above $30,000 is taxed at 40 percent. If your income is $50,000, how much will you pay in taxes? Determine your marginal and average tax rates. Is this a progressive tax? Explain.arrow_forward
- Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. If your income is $50,000, how much will you pay in taxes? Determine your marginal and average tax rates. Is this a progressive tax?arrow_forwardCritically evaluate the impending rise of sales tax planned by the Japanese government and its effect on the demand and eventually public spendingarrow_forwardANSWER ALL 15 CORRECTLY SINCE YOU'RE JUST WRITING TRUE OR FALSE FOR EACH, THANKS Indicate True or False for all: 1. Under proportional taxation, as a person’s taxable income increases, the percentage of income paid in taxes increases. 2. With progressive taxation, a smaller percentage of taxable income is taken in taxes as taxable income increases. 3. For State and Local governments, key taxes are individual income taxes, corporate income taxes, Social Security taxes, and excise taxes on items such as gasoline and alcoholic beverages. 4. Only U.S. citizens who earn income in the United States are required to pay federal income taxes on all taxable income, including income earned abroad. 5. Corporate tax is the main source of government tax receipts. 6. The difference between the purchase price and sale price of an asset, such as a share of stock or a plot of land, is called a capital gain if it is a profit. 7. Tax brackets for the purposes of calculating marginal tax rates each year…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning