As to how work incentives are affected by the implicit tax on earned income and how do some people avoid the implicit tax. Concept Introduction: Implicit Tax – It refers to the indirect cost that is incurred as the result of getting employment, because welfare program assistance is missed.

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Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect does the tax treatment of unemployment insurance benefits have on the ability it provides its recipients for smoothing? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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Chapter 18, Problem 4.8P

To determine

As to how work incentives are affected by the implicit tax on earned income and how do some people avoid the implicit tax.

Concept Introduction:

Implicit Tax – It refers to the indirect cost that is incurred as the result of getting employment, because welfare program assistance is missed.

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Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect does the tax treatment of unemployment insurance benefits have on the ability it provides its recipients for smoothing? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

APPORTIONMENT (COMPUTATION) 1. What leisure activities do you participate in? In the table below, there are five activities and the approximate number of participants (in millions) in each. Exercise Sports Charity Work Home Repair Computer Hobbies 150 90 85 130 80 Suppose you wish to allocate $100 million to promote leisure activities based on the number of participants. a. Find the modified quota for each activity using the divisor 5.25 b. Find how much money should be apportioned to each activity using Jefferson's Method.

just subpart d) need graph (figure) drawn computerised