Who pays taxes and who receives government spending? Explain
What will be an ideal response?
People with high incomes pay a much larger fraction of their income in taxes than do people with low incomes. These tax payments also are more likely to be used for government spending that is concentrated on programs for those with lower incomes. These programs would include welfare, subsidized health care, public education, and jobs programs. The general conclusion is that government spending of tax dollars obtained from those with high incomes will most likely be spent on government programs for those with low incomes. They also will benefit from the other general goods and services provided by government such as national defense or roads.
You might also like to view...
If Sarah decides not to hit Tom, what would Tom's best response be
a. Tell b. Not tell c. Run d. Hide
The larger the implicit costs of a business:
A. the greater accounting profit will be. B. the smaller economic profit will be. C. the more likely it will be a successful venture. D. the smaller the explicit costs will be.
Starbucks reports net income for 2018 of $4,518.3 million. Its stockholders’ equity is $5,450.1 million and $1,169.5 million for 2017 and 2018, respectively.
a. Compute its return on equity for 2018. b. Starbucks repurchased over $7,208.7 million of its common stock in 2018. Did this repurchase increase or decrease Starbucks’ ROE? If Starbucks had not repurchased common stock in 2018, what would ROE have been?
For much of its history, General Motors was characterized by having versions of the same car with different nameplates, e.g., Chevrolet vs. Cadillac. This business model has seemed less successful in recent years. What might explain this?
A) Consumers have more information concerning costs and quality. B) Consumers have more information concerning costs but not quality. C) Sellers have more information concerning costs but consumers have more information about quality. D) Consumers have less information concerning costs and quality.