Evaluate the overall tax incidence of state and local taxes in contrast with federal taxes. In addition, what can be concluded about the overall tax system?
What will be an ideal response?
State and local taxes (with sales taxes playing a big role) seem as a group to be mildly regressive. Federal taxes, dominated by the individual income tax but increasingly affected by the regressive payroll tax, are mildly progressive. The overall system is mildly progressive.
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What is a budget deficit? What is a budget surplus? Since 1970, has the U.S. government run more budget deficits or budget surpluses?
What will be an ideal response?
What is barter? What is a double coincidence of wants? How does the existence of money affect barter?
What will be an ideal response?
New home construction is included in the consumption component of GDP
a. True b. False Indicate whether the statement is true or false
You receive a paycheck from your employer, and your pay stub indicates that $400 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct?
a. This type of tax is an example of a payback tax. b. Your employer is required by law to pay $400 to match the $400 deducted from your check. c. The $400 that you paid is the true burden of the tax that falls on you, the employee. d. All of the above are correct.