Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 20% $2,000 A Family $50,000 20% $10,000 В Family $100,000 20% $20,000 C Identify the tax structure based on the tax chart. Regressive Tax Progressive Tax O Proportional Tax

Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 20% $2,000 A Family $50,000 20% $10,000 В Family $100,000 20% $20,000 C Identify the tax structure based on the tax chart. Regressive Tax Progressive Tax O Proportional Tax

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Table 12-3 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown. Income (Dollars) S 50,000 20,000 10,000 30,000 100,000 30,000 200,000 80,000 40,000 Refer to Table 12-3. For an individual with $200,000 in taxable income, which tax schedule has the lowest average tax rate? Oa. Tax Schedule D O b. Tax Schedule B O c. Tax Schedule C O d. Tax Schedule A с % JE JE 5 6 JUL G Ін B Tax Schedule A Tax Schedule B Tax Schedule C Tax Schedule D 17,500 15,000 25,000 30,000 30,000 60,000 & 7 IN FB U Amount of Tax Due (Dollars) * 8 Ĉ UL JO K ( 9 O *- ) O F11 P + F12 11 : M JUJU Question 30 of 50 PrtSc [ Insert LO
Why are sales taxes considered regressive?
8. Explain why each of the following taxes is progressive or regressive. a. $1 per pack federal excise tax on cigarettes b. The federal individual income tax d. The federal payroll tax.
5 The largest source of government revenues is ________. Select one: a. personal income taxes b. Social Security taxes c. corporate income taxes
Income: 115,000 State Tax Rate: 7 % Federal Income Tax: $0 to $29,000 10% Federal Payroll Tax Rate: 12% $29,001 to $58,300 15% $58,301 to $163,000 29% * Round all answers to 2 decimal places. Do not include any commas or percentage signs.* a) Compute the total tax paid b) What is the marginal tax rate? c) What is the average tax rate?
The government implements a negative income tax plan with a guaranteed minimum income of $5,000 and a phase-out rate for payments of 50%. Complete the following table by calculating the negative tax and total after-tax income for each family income given. (Note: Suppose that any income above $10,600 would pay a positive tax.) Family Income (Dollars) Negative Tax Total After-Tax Income (Dollars) (Dollars) 0 2,600 4,600 6,600 8,600 10,600
The value of a tax deduction: is lower for taxpayers in higher marginal tax brackets. does not vary by tax bracket. is greater for taxpayers in higher marginal tax brackets. decreases as a tax system becomes more progressive.
7. Within the context of taxation policy, many economists have preferred the use of consumption tax to income tax. Explain.
A regressive tax is a tax for which people with lower incomes Group of answer choices pay a lower percentage of their incomes in tax than do people with higher incomes. pay a higher percentage of their incomes in tax than do people with higher incomes. pay the same percentage of their incomes in tax as do people with higher incomes. do not have to pay unless their incomes exceeds a certain amount.
A government replaces progressive taxes with regressive taxes. What is the likely outcome? a. Distribution of Income more even; Marginal Tax Rate decrease b. Distribution of Income more uneven; Marginal Tax Rate increase c. Distribution of Income more uneven; Marginal Tax Rate decrease d. Distribution of Income more even; Marginal Tax Rate increase
QUESTION 3 What tax per item t will maximize total tax reveue T = tq if the demand is p+q3D1000 and supply 92 +2.5q+920 30 is
Find the missing values for [ a ] through [ j ] below. [ j ] Which tax structure above is progressive? Which tax structure above is regressive?