The table shows the distribution of market income.Suppose the government redistributes income by taxingthe 60 percent of households with the highest marketincomes 10 percent, then distributing the tax collectedas an equal benefit to the 40 percent with the lowestmarket income.What percentage of total market income is redistributedto the second 20 percent of households?What is the income share of the third 20 percent ofhouseholds after tax and redistribution?>>> Answer to 1 decimal place.earchThe second 20 percent of households receives benefitsequal to percent of total market income.The third 20 percent of households earns percent oftotal income after tax and benefits.Ipoint(s)HouseholdsLowest 20 percentSecond 20 percentThird 20 percentFourth 20 percentHighest 20 percentMarket income(percentage of totalmarket income)59203036Next

Regressive tax system is a system in which a person pays a fixed amount of tax regardless of income.…

Answered: The second 20 percent of households…

The second 20 percent of households receives benefits percent of total market income. equal to spercent of The third 20 percent of households earns total income after tax and benefits.

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

Use the 2019 U.S. federal tax rates in the table to calculate answers to the questions below. Give all answers to two decimals. V Taxable Income $0-$9,700 $9,701-$39,475 $39,476-$84,200 $84,201-160,725 $160,726-$204,100 $204,101-$510,300 Over $510,300 1st attempt Tax rate 10% 222335 12 24 37 See Hin
FRONT PAGE State Lotteries: A Tax on the Uneducated and the Poor Americans now spend over $85 billion a year on lottery tickets. That's more than we spend on sporting events, books, video games, movies, and music combined. That spending works out to about $650 a household. Poor people are proportionally the biggest buyers of lottery tickets. Households with less than $25,000 of income spend $1,100 a year on lottery tickets. By contrast, households with more than $50,000 of income buy only $300 of lottery tickets each year. Education also affects lottery spending: 2.7 percent of high school dropouts are compulsive lottery players, while only 1.1 percent of college grads play compulsively. Because lottery games are a sucker's game to start with-payouts average less than 60 percent of sales-lotteries are effectively a regressive tax on the uneducated and the es poor. Source: Research on lottery sales. According to Front Page Economics, what percentage of income is spent on lottery tickets…
Use the table below to choose the correct answer. Income Таx (dollars) (dollars) 10,000 2,000 20,000 4,000 40,000 8,000 The tax schedule shown here is regressive. O proportional. O progressive. O proportional up to $20,000 and regressive beyond that.
38
When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is A. 25 percent; 25 percent B. 40 percent; 25 percent C. 40 percent; 40 percent D. 25 percent; 40 percent
c. A progressive tax d. A regressive tax QUESTION 3 Corporate profits are a. taxed to pay for Medicare. b. exempt from taxes. c. included in payroll taxes. d. taxed twice, once as profit and once as dividends. QUESTION 4 A value-added tax or VAT is a tax on a. retail purchases only. b. pollution. c. all stages of production of a good. d. wholesale purchases only. QUESTION 5 Table 12-17 INCOME $50,000 100,000 200,000 AMOUNT OF TAX $12,500 (25%) $25,000 (25%) $50,000 (25%) TAX A
Assume that the government proposes a negative income tax that calculates taxes owed using the following formula: taxes owed = 0.25 Income $20,000. If a family earns an income of $60,000, how does this tax scheme affect them? they receive a subsidy of $5000 they pay $15,000 in taxes they pay $20,000 in taxes they receive an income subsidy of $15,000.
Abraham. Income level $10,000 $50,000 $100,000 Refer to the table above. Abraham faces a a) progressive Ob) proportional Oc) regressive $5,000 $10,000 $15,000 Taxes Paid Brenda $1,000 $5,000 $10,000 tax system. Caitlyn $1,000 $10,000 $30,000
MACROECONOMICS Progressive Tax Based on your yearly income above, calculate the amount of tax each income bracket would pay under a progressive tax plan. Each row up to the total income amount should be filled in. For an example of a completed chart, go to Page 4 of Lesson 05.03: Sharing with Uncle Sam. Calculate the tax for $95,000. For example, $10,000x40%-%$4,000 in tax. Show your work!! Proposed Regressive Plan Calculate the tax for S25,000. For example, $10,000x40%=$4,000 in tax. Show your work!! 10% on income up to $25,000 20% on income between S25,000 and S34,000 25% on income between S34,000 and S44,000 30% on income between $44,000 and S80,000 40% on taxable income over S80,000 TOTAL TAX PAID (sum of all rows):
4. Study Questions and Problems #4 Federal income tax is an example of a tax that follows the principle. According to this principle, an individual with a higher afford to pay more in taxes. Therefore, regardless of who reaps the benefits from the taxes, individuals with higher incomes proportion of their income in taxes. income should contribute a