Under a proportional or flat tax,XO everyone pays the same dollar amount in income taxesO everyone pays the same tax rateO tax rates are assessed at a constant percentage of government spendingO an individual's tax is based on his percentage of income versus total national incomeQuestion 4Which of the following best describes a progressive tax policy?O People with higher incomes will pay more in taxes than people with higher incomes.O People with lower incomes will pay more in taxes than people with higher incomes.O People with higher incomes will pay a higher tax rate than people with lower incomes.O People with lower incomes will pay a higher tax rate than people with higher incomes

Under a proportional or flat tax O everyone pays the same dollar amount in income taxes O everyone pays the same tax rate O tax rates are assessed at a constant percentage of government spending O an individual's tax is based on his percentage of income versus total national income

Under a proportional or flat tax O everyone pays the same dollar amount in income taxes O everyone pays the same tax rate O tax rates are assessed at a constant percentage of government spending O an individual's tax is based on his percentage of income versus total national income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is the marginal tax rate? Select one: A. Total income divided by total taxes. B. The proportion…

A: The marginal tariff rate is how much extra duty paid for each extra dollar acquired as pay

Q: 1. Suppose the marginal or bracket tax rate for income from $1 to $15,000 is 12%, the marginal tax…

A: A progressive tax is a tax/duty wherein the expense rate increments as the available income/taxable…

Q: ose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she…

A: Tax is referred to financial charge that is compulsory for every individual. Taxation is a term used…

Q: katie earns $40,000 and pays $4,500 in taxes and Samantha earns $80,000 and pays $9,000 in taxes,…

A: Taxes are the share of income which is charged by the government.

Q: Assume for the following scenario that there is a 10% sales tax on gasoline. Determine the amount of…

A: The sales tax of 10% is implemented. The taxable income income and gasoline expenditure for each…

Q: Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang…

A: A proportional tax is the rate of tax that remains the same for all the income types of groups.…

Q: Calculate net indirect taxes if indirect taxes is $30 million and the subsidies are $16 million

A: The given information is as follows:- Indirect taxes = $30 million Subsidies = $16 million We have…

Q: Federal income tax is (a. progressive b. proportionate (flat) c. regressive) , Social Security tax…

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first one for…

Q: In the short run, the price level will be be 150 and real GDP will be 100 and real gross domestic…

A: Market discretion is considered as the accompanying conditional orders to set up limited prices such…

Q: Net taxes are taxes paid minus O A. subsidies O B. consumption expenditure of households O C.…

A: Taxes are the duties imposed by the government and subsidies are some kind of monetary assistance or…

Q: $4,00060, 00024,000.0060,000$6,000Complete the following table by deriving the marginal tax rates in…

A: Information on the income tax systems in two hypothetical countries:Country ACountry BTaxable income…

Q: Thelma's current income is $100,000 and she currently pays $30,000 in income tax.w Any income she…

A: Average tax rate = (Total tax / Total income) Marginal tax rate = (change in tax paid / change in…

Q: The Federal Government brings in revenue through taxation in all of the following forms EXCEPT: A.…

A: The federal government does not primarily depend on sales and property taxes to generate sales.…

Q: Find the Net indirect taxes if the indirect taxes are $360 and the subsidies are $40?

A: Introduction : Net indirect is the difference between indirect taxes and subsidy. Indirect tax =…

Q: Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in…

A: Since you have not mentioned the sub-parts you need help with and since we are entitled to answer up…

Q: Proposed Regressive Plan 40% on income up to $25,000 30% on income between $25,000 and $34,000 25%…

A: Here we are given the income tax structure, using that we solve the given questions.

Q: he following table shows tax payments made for various incomes. According to the information in the…

A: The following problem has been answered as follows:

Q: Table 12-10 On Taxable Income ... The Tax Rate is ... Up to $8,375 10% From $8,375 to $34,000 15…

A: Taxable income: It is the total income onto which a tax slab applies based on which an individual or…

Q: A tax that takes a smaller percentage of an individual's income as their income rises is called a a.…

A: Tax are the mandatory charge levied by the government. There are two types of tax:- direct tax and…

Q: Sue earns $60,000 per year and pays $12,000 in taxes. She gets a raise and now earns $100,000 per…

A: Taxes are compulsory payments to the government without expecting any direct return or benefit.

Q: When airfares between Santa Rosa and Los Angeles averages $69, the quantity consumed is 42,500…

A: Dear student, you have asked multiple sub-part questions in a single post and have not mentioned…

Q: A tax that takes a smaller percentage from high-income earners than it does from low-income earners…

A: There are different types taxes, regressive, progressive and proportional

Q: Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on…

A: 0−10,000 = No tax 10,000 − 20,000 = 20% 20,000 − 30,000 = 30 % > 30,000 = 40%

Q: A progressive tax system is one in which the average tax rate increases as income increases. Don't…

A: Taxation is the cycle by which a government or other taxing power powers a financial charge or duty…

Question

Under a proportional or flat tax,
X
O everyone pays the same dollar amount in income taxes
O everyone pays the same tax rate
O tax rates are assessed at a constant percentage of government spending
O an individual's tax is based on his percentage of income versus total national income
Question 4
Which of the following best describes a progressive tax policy?
O People with higher incomes will pay more in taxes than people with higher incomes.
O People with lower incomes will pay more in taxes than people with higher incomes.
O People with higher incomes will pay a higher tax rate than people with lower incomes.
O People with lower incomes will pay a higher tax rate than people with higher incomes

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Taxation

VIEW

Step 2: Explain the correct option

VIEW

Step 3: Explain why other options are incorrect

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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
ANSWER ALL 15 CORRECTLY SINCE YOU'RE JUST WRITING TRUE OR FALSE FOR EACH, THANKS Indicate True or False for all: 1. Under proportional taxation, as a person’s taxable income increases, the percentage of income paid in taxes increases. 2. With progressive taxation, a smaller percentage of taxable income is taken in taxes as taxable income increases. 3. For State and Local governments, key taxes are individual income taxes, corporate income taxes, Social Security taxes, and excise taxes on items such as gasoline and alcoholic beverages. 4. Only U.S. citizens who earn income in the United States are required to pay federal income taxes on all taxable income, including income earned abroad. 5. Corporate tax is the main source of government tax receipts. 6. The difference between the purchase price and sale price of an asset, such as a share of stock or a plot of land, is called a capital gain if it is a profit. 7. Tax brackets for the purposes of calculating marginal tax rates each year…
Given the market value of indirect taxes are 630 and subsidies are 34 what will be the value of net indirect taxes?
QUESTION 18 Answer questions 17 and 18 based on the following information: As you know, Flabovia has adopted a Value Added Tax (VAT); the tax rate across the board is 15%. A farmer grows vegetables and sells them to the wholesaler for $1/lb. The wholesaler sells them to the local market for $3/lb. The market then sells them to its customers for $10/lb. Question 18. What is the net tax paid by the wholesaler? O a. $0.15 O b. $0.45 c. $1.15 d. $0.30 O e. None of the Above QUESTION 19 For most companies, Tax Havens offer the benefits/advantages of_ O a. More sales and lower costs of production O b. Easier access to their markets and less regulation O c. Lower taxes and more regulation Od. Less regulation and lower taxes O e. Larger markets and less regulation and
The percentage of an increase in income that is taxed is: O a regressive tax. O the marginal tax rate. O the average tax rate. O a flat tax.
TRUE - OR - FALSE The distinctive characteristic of a progressive tax is that the dollars paid in taxes rise as income rises. O True O False
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.
If low-income families pay 10% of their income in taxes while high-income families pay 20% of their income in taxes, the tax system is which of the following? Group of answer choices Unfair Regressive Excessive Proportional Progressive
Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income Таx Paid Average Tax Rate $ 10,000 $ 2,500 % 20,000 5,000 30,000 7,500
Today the federal government collects nearly O $1 billion a year in tax revenues. O $500 billion a year in tax revenues. O $1 trillion a year in tax revenues. O $4 trillion a year in tax revenues.
4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate $0-$10,000 0% $10,001-- $60,000 5% $60,001and above 0% For each of the following workers determine his or her marginal and average tax rate d. Would you describe the tax system as proportional, regressive, or progressive? Explain