A flat tax plan with a standard deduction of $25,000 in income and a tax rate of 20% would require an individual earning $100,000 to pay $15,000 in income taxes
a. True
b. False
Indicate whether the statement is true or false
True
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In the figure above, assuming that the firm does not shut down, the firm will produce
A) fewer than 19 units. B) 20 units. C) 30 units. D) 40 units.
The desired reserve ratio is 10 percent. Fly By Night Bank has deposits of $250,000 and reserves of $25,000. What is the amount of its excess reserves?
What will be an ideal response?
Most of the income of Americans comes from
a. transfer payments. b. the ownership of bonds and physical assets. c. the ownership of bonds and corporate stocks. d. the ownership of human capital.
A consumer spends all of her income on goods x and y. At her optimum,
a. her valuation of the two goods exceeds the market's valuation of the two goods. b. her marginal rate of substitution between good x and good y exceeds the ratio of the price of good x to the price of good y. c. the slope of her budget constraint is equal to the slope of the highest indifference curve that she can reach while remaining within her budget. d. her expenditure on good x is equal to her expenditure on good y.