In 2014, the Spanish government passed a law to change a regulation, known as the "Beckham law", on foreign athletes. This new law will require foreign professional athletes to pay the standard Spanish tax rate of 52 percent on earnings of more than 300,000 euros, up from the 24 percent rate they had been paying since 2005. For top-quality players, the elasticity of migration under the Beckham law was estimated to be 1.80 based on the average annual tax rate. Using this estimate f elasticity, the migration of top quality players to Spain should decrease by %. Round your response to the nearest two decimal places.

In 2014, the Spanish government passed a law to change a regulation, known as the "Beckham law", on foreign athletes. This new law will require foreign professional athletes to pay the standard Spanish tax rate of 52 percent on earnings of more than 300,000 euros, up from the 24 percent rate they had been paying since 2005. For top-quality players, the elasticity of migration under the Beckham law was estimated to be 1.80 based on the average annual tax rate. Using this estimate f elasticity, the migration of top quality players to Spain should decrease by %. Round your response to the nearest two decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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