Q: Some states exclude necessities, such as food and clothing, from
Some states exclude necessities, such as food and clothing, from their sales tax. Other states do not. Discuss the merits of this exclusion. Consider both efficiency and equity.
See AnswerQ: When someone owns an asset (such as a share of stock
When someone owns an asset (such as a share of stock) that rises in value, he has an “accrued” capital gain. If he sells the asset, he “realizes” the gains that have previously accrued. Under the U.S....
See AnswerQ: Suppose that your state raises its sales tax from 5 percent to
Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Is this plausible? Explain.
See AnswerQ: Categorize each of the following funding schemes as examples of the benefits
Categorize each of the following funding schemes as examples of the benefits principle or the ability-to-pay principle. a. Visitors to many national parks pay an entrance fee. b. Local property taxes...
See AnswerQ: The information in many of the tables in this chapter can be
The information in many of the tables in this chapter can be found in the Economic Report of the President, which appears annually. Using a recent issue of the report at your library or on the Interne...
See AnswerQ: The chapter states that the elderly population in the United States is
The chapter states that the elderly population in the United States is growing more rapidly than the total population. In particular, the number of workers is rising slowly, while the number of retire...
See AnswerQ: Suppose you are a typical person in the U.S.
Suppose you are a typical person in the U.S. economy. You pay 4 percent of your income in a state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee sha...
See AnswerQ: What is the concept of horizontal equity and why is it hard
What is the concept of horizontal equity and why is it hard to apply?
See AnswerQ: What is meant by the efficiency of a tax system? •
What is meant by the efficiency of a tax system? • What can make a tax system inefficient?
See AnswerQ: Draw a diagram of the long-run equilibrium in a monopolistically
Draw a diagram of the long-run equilibrium in a monopolistically competitive market. How is price related to average total cost? How is price related to marginal cost?
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