🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
241
views
1 Nov 2020

6. The programs for the welfare of the poor people are paid for through the federal income tax, which is a ____________________ designed in such a way that the rich pay a higher percentage in income taxes than the poor.

a. regressive  tax system

b. progressive tax system

c. proportionate tax system

d. ad Valorem tax system

Booster class
Microeconomics
Skill
Evaluating the Government Policies to Reduce Income Inequality
Watch
1
answer
0
watching
241
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Raushan Raj
Raushan RajLv8
1 Nov 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

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

Identify whether the scenarios below are examples of regressive or progressive taxes. 
 
a. A sales tax on food and clothing. 
b. An additional sales tax on cars bought for over $50,000. 
c. A flat-rate income tax of 20%, with no additional tax being paid on earnings above $1,000,000. 
d. An income tax system using tax brackets, where the percentage tax rate increases with income. 
e. A fixed poll tax on citizens and residents.

Suppose there are two people in a society. The federal tax law states that the first $20,000 of income is taxed at 10% and income above that is taxed at 30%. The federal government allows taxes paid to local governments to be deducted. George earns a gross income of $40,000, and Jorge earns a gross income of $65,000. Out of his income, George pays $1,000 in local taxes; out of his income, Jorge pays $20,000 in local taxes.

a. Is George's total (local + federal) tax bill greater than Jorge's total tax bill? Yes or No. Show work.

b. Is the federal tax system progressive, proportional, or regressive? Explain.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in