ECN 212 Study Guide - Final Guide: Tax Evasion, Income Property, Comparative Advantage
Document Summary
Taxes are a way to pay for the spending that gov does. Roads, national defense=things that the gov does that benefits us all. Tax evasion: illegal don"t do it that often for ur own good! Don"t pay tax on gas: ride a bike. Don"t pay property tax: pointing out the flaws in your house. Putting in atrium doors as opposed to sliding. If u earn 200k, you still pay the same amount as someone that earns 100k. Proportional( flat): tax of same rate no matter what the base. With a lat tax, rich people wouldn"t pay more than poor people. Duh 10% of 100k is more than 10% of 50k. Head( poll in england): every individual pays a certain, fixed amount. People think we spend more than we do. Deficit: what the gov. spends this yr in excess of the revenues this year. Top 1% earn ,000 paid 40% of all taxes collected.
