What is personal income tax? On which principle does the federal government levy this tax?
The personal income tax is a tax levied on the income of an individual or a family. The federal government levies personal income tax based the ability-to-pay principle as the personal income tax is progressive in nature. The ability-to-pay principle of taxation refers to the idea that people with greater ability to pay taxes should pay higher taxes.
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Net investment
A) equals gross investment plus depreciation. B) is the only measure of investment used to calculate GDP. C) equals gross investment minus depreciation. D) is equivalent to the existing capital stock in the economy.
If Marginal Cost (MC) is higher than Average Cost (AC), average cost is
a. falling b. rising c. constant d. none of the above
One key characteristic that is distinctive of an oligopoly market is that:
a. the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve. b. the decisions of one seller often influences the price of products, the output, and the profits of rival firms. c. there is only one firm that produces a product for which there are no good substitutes. d. there are many sellers in the market and each is small relative to the total market.
When referring to GDP, which is not a common alternative designation economists use?
A. Net National Income B. Total Output C. National Income D. Aggregate Expenditure