Chapter 6: Q. 6.11 (page 140)
What was the individual's marginal state income tax rate in 2018? Did this individual experience proportional, progressive, or regressive taxation? Explain briefly.
Marginal tax rate: 2.5%
Proportional
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What was the company's marginal city income tax rate in 2018? Did this company experience proportional, progressive, or regressive taxation? Explain briefly.
Why might people be willing to sacrifice dollars to avoid "feeling bad" about flouting tax laws?
Refer to the table in Problem 6-3 when answering the following questions. Show your work, and explain briefly.
a. Does Christino experience progressive, proportional, or regressive taxation?
b. Does Jarius experience progressive, proportional, or regressive taxation?
c. Does Meg experience progressive, proportional,
or regressive taxation?
The British government recently imposed a unit excise tax of about$154 per ticket on airline tickets for flights to or from London airports. In answering the following questions, assume normally shaped demand and supply curves.
a. Use an appropriate diagram to predict the effects of the ticket tax on the market-clearing price of London airline tickets and on the equilibrium number of flights into and out of London.
b. What do you predict is likely to happen to the equilibrium price of tickets for air flights into and out of cities that are in close proximity to London but are not subject to the new ticket tax? Explain your reasoning.
Why is there always a difference between static analysis and dynamic analysis of tax changes?
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