Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 30, Problem 15E
To determine
To explain:
The impact of regressive tax on work.
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Students have asked these similar questions
Sales taxes tend to be regressive, that is why food, medicine are often excluded? True or False
Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, why might this be so?
Which of the following will most likely lead to a more equal distribution of income?
a. More regressive national sales tax
b. More progressive income taxes
c. An increase in the high school dropout rate
d. An increase in structural unemployment
e. An increase in earnings for owners of capital
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- Income Tax rates will be changed to the following Marginal Tax Rates given by: T(I) = 40*I2/ I2+1000 T is the tax rate given as a percentage I is the income of the person in THOUSANDS of dollars What is the marginal tax rate approaching as Income approaches infinity? (round the nearest hundredth of a percent)arrow_forwardFind the missing values for [ a ] through [ j ] below. [ j ] Which tax structure above is progressive? Which tax structure above is regressive?arrow_forwardDiscuss the view that the best way to achieve greater equity in the distribution of income in a country is to use a progressive tax system.arrow_forward
- Barry can work 3120 hours in a (non-leap) year. He has the opportunity to work for $20 per hour. With the income that he earns from working he purchases cans of soup at a price of $1 per can. He has no other income. Barry must pay taxes on the income that he earns. The first $15,000 that he earns is exempt from taxation. However, on every dollar that he earns above $15,000, he faces a marginal tax rate of 15% (so for every $1 that he earns above $15,000 he must pay the government $.15). a) Putting hours of leisure on the x-axis and cans of soup on the y-axis illustrate Barry’s budget set. Be sure to label (put the coordinates) on both intercepts and the “kink” point on the budget line. b) Barry is a typical American worker who works 2000 hours per year. What are Barry’s total tax payments? Illustrate an indifference curve through his best bundle in your diagram for part (a). The President’s Tax Reform Panel proposes to change the tax laws. First, the government should lower the level…arrow_forwardWhat role taxes policy plays in determining the GDP or national income in an economy? Explain with numerical examples?arrow_forward
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