Questions from Taxation

Q: Mr. P owns a residential apartment complex in a suburban area

Mr. P owns a residential apartment complex in a suburban area. This year, the local jurisdiction increased the property tax rate on the apartment complex. To offset this additional cost, Mr. P decreas...

Q: BPK Inc. and OPK Inc. are owned by the same

BPK Inc. and OPK Inc. are owned by the same family. BPK’s marginal tax rate is 21 percent, and OPK’s marginal tax rate is 32 percent. BPK is about to incur a $72,000 deductible expense that would bene...

Q: Mr. and Mrs. K pay $18,000 annual

Mr. and Mrs. K pay $18,000 annual tuition to a private school for their three children. They also pay $2,300 property tax on their personal residence to support the local public school system. Should...

Q: In each of the following cases, discuss how the taxpayers might

In each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a manner consistent with the substitution effect. a. Mr. H earns $195,000 a year as a salaried employe...

Q: Ms. V resides in a jurisdiction with a 35 percent income

Ms. V resides in a jurisdiction with a 35 percent income tax. Ms. V has $40,000 that she could invest in bonds paying 8 percent annual interest. She is also considering spending the $40,000 on a new l...

Q: What nonmonetary incentives affect the amount of time and energy people devote

What nonmonetary incentives affect the amount of time and energy people devote to income-generating activities?

Q: What evidence suggests that the federal tax system receives a low grade

What evidence suggests that the federal tax system receives a low grade when evaluated on the standard of sufficiency?

Q: The federal government levies a gift tax on the value of property

The federal government levies a gift tax on the value of property that people give away during their life and an estate tax on the value of property that people transfer at death. From the government’...

Q: Discuss the tax policy implications of the saying “an old tax

Discuss the tax policy implications of the saying “an old tax is a good tax.”

Q: Both the federal government and many states impose so-called sin

Both the federal government and many states impose so-called sin taxes: excise taxes levied on the retail sale of liquor and cigarettes. Discuss the reasons why sales of these particular items make a...