In the 1980s, President Ronald Reagan argued that high tax rates distorted economic incentives to work and save. In the 1990s, President Bill Clinton argued that the rich were not paying their fair share of taxes. Which of the following statements best summarizes the economic theories behind the differing philosophies?
a. President Reagan was concerned about vertical equity, whereas President Clinton was concerned about horizontal equity.
b. President Reagan was concerned about average tax rates, whereas President Clinton was concerned about horizontal equity.
c. President Reagan was concerned about marginal tax rates, whereas President Clinton was concerned about vertical equity.
d. None of the above is correct.
c
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Some studies have found that people who owned guns were more likely to be killed with a gun. Do you think this study is strong evidence in favor of stricter gun control laws? Explain
What will be an ideal response?
If the marginal revenue product of an input exceeds the marginal factor cost of the input, the firm
A) should hire less of the input. B) is maximizing profit. C) is not on its marginal cost curve. D) should increase its use of the input.
Which of the following correctly identifies an advantage of entering data in a spreadsheet rather than a text file?
A. Data in various websites is more often available as spreadsheets than as text files. B. Different observations are more likely to be run together in spreadsheets than in text files. C. Spreadsheets are readable on most computers, whereas text files are not. D. Spreadsheets allow manipulation of data, whereas text files do not.
The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage
How much would the employment change if the price floor was eliminated? A) Employment would decrease by 12.5%. B) Employment would increase by 12.5%. C) Employment would decrease by 25%. D) Employment would increase by 25%.