ECON 133 Lecture Notes - Lecture 12: Capital Gains Tax, Tax Rate, Payroll Tax
Document Summary
C affected by sales tax, income tax, savings tax. I affected by corporate tax, wealth tax, estate tax, savings tax, capital gains tax. Affects investment and prod, lr growth, r&d credits. Taxes change behavior of individuals, companies, gives incentives. Some taxes address ie but some increase ie. Estate and wealth tax tries to address ie by redistributing. When you lower top marginal tax rate there is incentive to bargain for higher wage. How do we measure fairness of the tax system. Taxes: payroll tax, income tax, corporate tax, wealth tax, wealth tax, consumption tax. Gross income - all money made in a year from different sources from salary, interest, dividend. Agi (adjusted gross income) - gross income minus allowable exspenses what is left is what you pay taxes on. Take the taxable income and use marginal tax rate pay in chunks. People that have more should pay more than people that have less.
