Briefly compare the three tax systems based on the relationship between the marginal tax rate and the average tax rate as income rises
What will be an ideal response?
The three tax systems are proportional, progressive, and regressive taxes. A proportional tax system is one in which the amount of taxes is proportional to income so that the marginal tax rate equals the average tax rate at all income levels. A progressive tax system is one in which a higher percentage of income is paid as taxes when income rises, so that the marginal tax rate is higher than the average tax rate when income rises. A regressive tax system is one in which a lower percentage of income is paid as taxes when income rises, so that the marginal tax rate is lower than the average tax rate when income rises.
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Under the bimetallic standard of the 19th century,
a. gold was initially valued at about 15 times that of silver. b. price fluctuations of gold and silver eased the adoption of the system. c. price fluctuations caused hoarding of undervalued coins. d. Both a and b are correct. e. Both a and c are correct.
If political influences, independent of any economic forces, lead to a larger government budget deficit, what will be the effect on the loanable funds market?
a. The interest rate will rise and the amount of saving will increase. b. The interest rate will fall and the amount of saving will increase. c. The interest rate will rise and the amount of saving will decrease. d. The interest rate will fall and the amount of saving will decrease. e. The interest rate will rise but the change in saving will be ambiguous.
Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to require a permit for each ton of manure applied. The government gives each farmer 50 tradeable permits. Farmer A incurs losses of $25 for each ton of manure he does not apply, and Farmer B incurs losses of $50 for each ton of manure he does not apply. After permit trading,
we would expect that a. farmer A will no longer apply manure, and farmer B will not reduce his manure application at all. b. farmer B will no longer apply manure, and farmer A will not reduce his manure application at all. c. farmer A and B will each apply 50 tons of manure. d. farmer A will apply 25 tons of manure, and farmer B will apply 50 tons of manure.
(Last Word) In 1960 the ratio of workers to Social Security and Medicare beneficiaries was ______; by 2040 it is projected to be _________
A. 10:1; 3:1 B. 3:1; 2:1 C. 5:1; 2:1 D. 2:1; 3:1