Question

1. Do the math. Due to in-kind-transfers, 36 million more Americans were poor in 2010 than in 1965.

2. Which of the core choices that confront every nation is failing in the income distribution inequality? For whom

3. In a progressive tax system the marginal tax rate is the rate imposed on the last dollar of income.

4. If the tax elasticity of supply is 0.15, by how much will the quantity supplied decrease when the marginal tax rate increases from 35 to 45 percent?

Answer 3.8%

5. Had Obama succeeded in raising the top marginal tax rate (News, p. 417), how much more tax would he have paid in 2010? (Use the tax rates in Table 19.1 and the News on p. 415.)

Answer: 52,228.82.

6. What percentage of income is paid in Social Security taxes by a worker earning

(a) $40,000?

(b) $80,000?

(c) $200,000?

(d) What kind of tax is this? (A: progressive; B: regressive; C: proportional)

Answers:

(a) __________.

(b__________.

(c____________.

(d) ____________

7. A nominal tax rate is tax paid divided by taxable income.

8. An effective tax rate is tax paid divided by total income.

The basis that describes the regressive tax burden of property taxes on the renter, who does not own property is tax incidence