Discuss the factors that determine the ultimate burden of the corporate tax
What will be an ideal response?
The ultimate burden of the corporate tax appears to depend on several factors. One generally accepted study shows that the owners of corporations, proprietorships, and partnerships all bear the burden of the corporate tax in rough proportion to profits, even though it is directly levied only on corporations, that wage effects are small, and that excise effects are roughly neutral. However, there is still much debate about whom the corporate tax "hurts." The burden of the corporate tax is progressive because profits and capital income make up a much bigger part of the incomes of the high-income households.
You might also like to view...
A rise in the value of a currency is called a(n)
A) consolation. B) integration. C) appreciation. D) depreciation.
The more elastic the demand for a good, the
A) less a sales tax lowers the price paid by buyers. B) more a sales tax lowers the price paid by buyers. C) less a sales tax raises the price paid by buyers. D) more a sales tax raises the price paid by buyers.
Expansionary fiscal policy:
What will be an ideal response?
If it takes one country one unit of labor to produce either a computer or a TV, but it takes the other country two units of labor to produce a computer and only one to produce a TV, then the first country has
A. both a comparative and absolute advantage in both goods. B. an absolute advantage in both goods. C. a comparative advantage in both goods. D. an absolute and comparative advantage in production of computers.