Which one of the following statements is TRUE?   In a proportional tax system, the marginal tax rate always exceeds the average tax rate.   In a proportional tax system, the average tax rate always exceeds the marginal tax rate.   The U.S. Social Security tax is regressive.   The U.S. Social Security tax is proportional.

Q: Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go…

A: Arthur Laffer is the economist who explain the relationship between tax rates and the revenue…

Q: The table below describes three tax systems (A, B, and C) for three income levels. Tax system A Tax…

A: (a) Tax System A:i) Percentage of income= 2,00020,000×100=10%ii) Percentage of…

Q: Suppose you earned $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket…

A: To calculate the total taxes paid, we need to determine the amount of income that falls into each…

Q: Which of the following statements do economists generally disagree on? a) At an average tax rate of…

A: The objective of the question is to identify the statement that economists generally disagree on…

Q: What are some examples of goods subject to selective sales taxes?

A: Selective sales taxes are those taxes levied on specific goods and services, instead of on a broad…

Q: Economist Arthur lagger famously pointed out that, in some cases, income tax revenue can actually go…

A: The tax is the unilateral payment made by the people towards the government for various purposes…

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: Answer all the questions! 1. What has been the relationship over the past century between the…

A: The term "government revenue" describes the funds that a government receives from a variety of…

Q: According to the textbook, which of the following statements is (are) correct? (x)  Taxes on…

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Q: Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a…

A: Considering a broad category, there are 3 types of taxes:- Regressive, progressive and proportional.…

Q: What would it take to convert a sales tax into a true consumption tax? Senator Smith has suggested…

A: A tax on products and services that are consumed or used by people or households is known as a…

Q: Compare and contrast Demand Side and Supply Side tax cuts.

A: Macroeconomics have two sides to the economy, demand-side economy and supply-side economy. The…

Q: true

A: Cigarette tax is an excise tax  Excuse taxes are specific taxes required on goods and services like…

Q: The social security tax is 6.2% on employees’ income earned below $113,000. Is this tax progressive,…

A: -Progressive tax is the rate of tax which increases with the rise in income that is to be taxed so…

Q: QUESTION 13 Suppose the market demand for a good takes the form: Qp=100 - 2P and market supply takes…

A: A market refers to the point where consumer and producers for the particular commodity interact to…

Q: What is wrong with this answer?

A: The correct answer is No one would have an incentive to work once they had earned $200,000, so…

Q: With a general utility function, explain why moving from a proportional tax to a lump sum tax would…

A: Taxes are compulsory financial charges or levies imposed by governments on individuals,…

Q: Describe the two basic philosophies of taxation fairness. How are these philosophies evident in the…

A: Tax fairness is a principle that states that a government's tax system should be equal to all…

Q: Identify whether each of the following taxes is progressive or regressive. a. Personal income tax:…

A: A progressive tax is defined as a tax rate that increases with an increase in the taxable income of…

Q: The U.S. federal income tax is an example of a _______________ income tax. a. regressive  b.…

A: Income tax is a tax that is charged on the income of individuals, businesses, and other entities.…

Q: A tax whose impact varies inversely with the income of the person taxed, and poor people have a…

A: In the case of the regressive tax rate, the greater burden of tax is imposed on the poorer people…

Q: With a progressive tax, those with income tend to pay a

A: A Tax System in which there is an increase in the tax rate as the taxable income increases is known…

Q: When assessing the welfare effects of taxes, we can conclude that They are always welfare…

A: Before-tax, equilibrium occurs where demand equals supply.When tax is imposed in a market, the…

Q: The federal government currently uses many forms of taxation, both direct and indirect, to raise…

A: Direct taxes are taxes that are imposed on natural persons and they are based on the taxpayer’s…

Q: Ann pays $3,850 in taxes on an income of $38,500. Therefore her proportional tax rate is undefined.…

A: Navigating the intricacies of individual taxation involves a careful examination of the relationship…

Q: suppose Lena makes $50000 per year and Mariah makes $65000 per year. If each pays $5000 in taxes:…

A: - Proportional: Everyone pays the same percentage of their income in taxes.- Progressive:…

Q: A government collects $175 billion quarterly in tax revenue. Each year it allocates $70 billion to…

A: Given that, A government collects $175 billion quarterly in tax revenue. Each year allocates $70…