If giving to public goods is subsidized through deductions under a progressive income tax, the government subsidizes public goods consumed by higher income individuals at greater rates than public goods consumed by lower income individuals.
Answer the following statement true (T) or false (F)
True
Rationale: Under a progressive income tax, higher income individuals face a greater marginal tax rate -- and their deductions therefore receive a higher subsidy.
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An increase in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and higher interest rates resulting from an upward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement up; shift left of B. movement up; shift right C. shift left of; movement up D. shift left of; shift right of
The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is
A) $700 billion. B) $400 billion. C) $500 billion. D) $600 billion. E) $800 billion.
If Happy Cows contractually requires distributors who purchase Happy Cows' milk to also purchase Happy Cows' cream, this is an example of ________.
A) territorial confinement B) a tying arrangement C) exclusive dealing D) a requirements contract
If we compare the trend in median wage for people with no more than a high-school education to that of people with a bachelor's degree, which of the following best describes median wage trend in the U.S?
a. The median inflation-adjusted wages for people with only a high school education have declined by about 6 percent since 1980, while the median wage of college graduates has risen by 12 percent in the same time period. b. The median inflation-adjusted wages for college graduates has declined by approximately 25 percent since 1980, while the median wage for people with only a high-school education has remained constant. c. The median inflation-adjusted wages for college graduates has increased by approximately 150 percent since 1980, while the median wage for people with only a high-school education has increased by only 31 percent. d. The median inflation-adjusted wages for college graduates has remained constant since 1980, while the median wage for people with only a high-school education has increased by 150 percent.