If the income tax system were indexed, a person whose nominal income went up from $30,000 to $33,000 in a year when the price index rose by 10 percent would pay
A. no increases in nominal income taxes.
B. no increases in real income taxes.
C. lower taxes in both real and nominal terms.
D. higher taxes in both real and nominal terms.
Answer: B
You might also like to view...
Population density varies little between the 50 states.
Answer the following statement true (T) or false (F)
Many public choice economists believe that elected political officials would make better choices if they had to vote for higher taxes in order to adopt new spending programs
a. True b. False Indicate whether the statement is true or false
When we look at exchange rates btwn two countries, what is the relationship between the exchange rate expressed in units of the domestic currency and the exchange rate expressed in units of the foreign currency?
a. They are both equal to one. b. They cancel each other out. c. One is always the reciprocal of the other. d. They can never coexist.
Hypothetical Data for Nation X in Billions of Local Currency
Refer to the above table. Nation X has a balance of trade
A. surplus of 10 billions. B. deficit of 50 billions. C. surplus of 50 billions. D. deficit of 10 billions.