Your Finance Minister considers making a tax reform. He asks you, as a senior tax administrator, to advise him on the requirements from a good tax system. What would you advise him?

Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…

A: Arthur Laffer is the economist who explain the relationship between tax rates and the revenue…

Q: Which tax system impacts more on the rich people, and why does it impacts them more?

A: Progressive Taxes is the tax system that impacts more on the rich people. Taxes that are assessed…

Q: Give two arguments why wealthy taxpayers shouldpay more taxes than poor taxpayers

A: 2 arguments that why wealthy taxpayers should pay more taxes than the poor are as follows: ·…

Q: is it always possible to increase tax revenues by increasing tax rates?

A: Laffer curve represents the relationship between tax rates and tax revenue. It is an inverted U…

Q: Define the term Marginal Tax Rate?

A: Marginal tax rate is the rate at which tax is incurred on an extra dollar of income. In United…

Q: Economist Arthur lagger famously pointed out that, in some cases, income tax revenue can actually go…

A: The tax is the unilateral payment made by the people towards the government for various purposes…

Q: What are the three distinct terms to describe taxes?

A: A tax is a unilateral payment made by the people towards the government for various purposes. The…

Q: What are the Average Tax Rates?

A: Average Tax rate is the sum of total taxes paid divided by total taxable income. Under the…

Q: what are the ultimate effects to society of shortfalls of tax collection

A: The shortfalls of tax collection lead to a decrease in public spending which leads to a decrease in…

Q: How can the government improve tax collections without imposing much tax to the consumer?

A: When a taxing body, typically a government, levies or imposes a financial responsibility on its…

Q: It is known that Qd = 80-2P and Qs = -10 + P Question: a. Draw it in a graph! b. If the government…

A: Qd = 80-2P Qs = -10 + P

Q: Give a brief conclusion about taxation in Malaysia

A: Malaysia has progressive direct tax system.People with higher income are taxed higher and people…

Q: The single largest source of revenue for the federal government are corporate income taxes.

A: The various sources of government revenue includes taxes, fines, fees, interest charges, etc. Taxes…

Q: Compare and contrast Demand Side and Supply Side tax cuts.

A: Macroeconomics have two sides to the economy, demand-side economy and supply-side economy. The…

Q: Can you explain how to figure this out? The demand curve moved to the left Showing what the demand…

A: Initially when there were no taxes involved, the equilibrium price which the buyer paid and the…

Q: Give an example for the Average Tax Rates?

A: Average tax rate is the tax paid as a percentage of total income. The average tax rate can be…

Q: conomists in Champaign have been studying the local market for pizza. The market is described in the…

A: With tax imposed in the free market, the equilibrium quantity will fall and the market price will…

Q: If a tax of $0.90 is imposed, what is the tax revenue?

A:

Q: Explain how an increase in tax can reduce tax revenue of a government

A: Tax is the major source of revenue for the government. The major government spending is funded from…

Q: Whichofthefollowingstatementsis(are)correct? (x)  A person’s tax liability refers to the amount of…

A: In an economy, government imposes tax on the people based on their income level and this tax is…

Q: What are the fundamental principles of taxation?

A: Taxation means levying or imposition of particular amount of tax on individuals by the government in…

Q: Suppose you earn $40,000 per year and pay taxes based on marginal taxX rates. The first tax bracket,…

A: Income tax is that type of tax which is imposed by government on the income of individuals &…

Q: If after a tax is imposed, the price paid by the buyer rises by $3 while the price received by the…

A: Given, After tax, price paid by buyer = rose by $3 After tax, price received by seller = falls by $2…

Q: The federal government currently uses many forms of taxation, both direct and indirect, to raise…

A: Direct taxes are taxes that are imposed on natural persons and they are based on the taxpayer’s…

Q: What is retrospective tax?

A: Tax is a compulsory payment imposed on the individuals, household and firms. Taxes are generally…

Q: What determines whether the buyer or seller pays the bulk of the tax?

A: The incidence of tax depends on the relative price elasticity of demand and supply.

Q: Describe the three distinct terms to describe the tax rates?

A: A tax is an obligatory payment made by the people towards the government in order to meet the…

Q: Discuss the measures that the UK government are taking to mitigate tax avoidance and tax evasion?

A: One sign of tax evasion is the amount of unreported income, which is the difference between the sum…

Q: A regressive tax is a tax for which people with lower incomes Group of answer choices pay a lower…

A: Mainly there are 3 types of taxes which are imposed by the government. These are proportional taxes,…

Q: Could you please explain in brief  why taxation is considered as the lifeblood of the state.

A: The nations tend to work with the goal to achieve the maximum possible level of growth. There are…

Q: Do you think taxpayers would be willing to pay higher property taxes if the revenue is earmarked for…

A: The practise of allocating tax or other revenues to a specific programme or purpose is known as…

Q: Accordingtothetextbook,whichofthefollowingstatementsis(are)correct? (x)  When a taxpayer attempts…

A: Taxation refers to the compulsory charge which the citizens of the country have to pay to the…

Q: What happens to the tax revenue when the tax on a good increase gradually? (a) Will rise (b) Will…

A: ‘Deadweight Loss(DWL)’ can be defined as a cost that is created to society due to any kind of market…

Q: The single largest source of revenue for the federal government are corporate income taxes. True or…

A: Taxes, penalties, fees, interest rates, and other sources of government revenue are among them.…

Q: Explain how corporate profits are taxed twice

A: Taxes refer to the fees that is charged by the government on various entities of the economy. The…

Q: According to the textbook, which of the following statements about taxes in the U.S. is (are)…

A: Taxes are defined as the compulsory charges imposed by the government of the country on individuals…

Q: List the main categories of federal revenue and spending and describe the difference between…

A: Apart from maintaining law & order and protecting a nation against external threats (national…

Q: According to the textbook, which of the following statements is (are) correct? (x) As a nation gets…

A: The answer is - (x) only

Q: A proportional tax is a tax for which people with lower incomes   Group of answer choices A. pay a…

A: Answer: Correct option: (A) Explanation: A proportional tax is called a flat tax because here the…