Answered: 25. In order to help pay for the costs…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

25. In order to help pay for the costs of extending health insurance to previously uninsured people, the PPACA imposes new taxes including the following, except:
A. An increase in Medicare payroll tax for individuals earning more than $200,000 ($250,000 for married couples) per year
B. An increase in the capital gains tax for individuals earning more than $200,000 ($250,000 for married couples) per year
C. A tax levied on indoor tanning
D. A tax on junk foods and soda

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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