MICROECON.S W/CONNECT ACCCESS>CUSTOM<
21st Edition
ISBN: 9781260281200
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 20, Problem 3RQ
To determine
Which among the options is an example of regressive taxation .
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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 20 Solutions
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- 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
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