Chapter 6: Q. 6.13 (page 141)
What was the company's marginal city income tax rate in 2018? Did this company experience proportional, progressive, or regressive taxation? Explain briefly.
25%
Progressive
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To raise funds aimed at providing more support for
public schools,astate government has just imposed
aunit excise tax equal to\(4for each monthly unit
of wireless phone services sold by each company
operating in the state.The following diagram
depicts the positions of the demand and supply
curves for wireless phone services before the unit
the excise tax was imposed. Use this diagram to deter
mine the position of the new market supply curve
now that the tax hike has gone into effect.
a.Does imposing the \)4-per-month unit excise tax
cause the market price of wireless phone ser
vices to rise by\(4per month?Why or why not?
b.What portion of the \)4-per-month unit excise
tax is paid by consumers? What portion is paid
by providers of wireless phone services?
What was the individual's marginal state income tax rate in 2018? Did this individual experience proportional, progressive, or regressive taxation? Explain briefly.
Why do you suppose that economists commonly refer to the elimination of all disability payments from the people able to work part time as a 'tax' imposed on disabled individual who is willing and able to earn part time income.
Given that the current gasoline excise tax is computed by applying a per gallon tax rate to each gallon an that a future vehicular user fee would be calculated by applying a per mile fee to each mile, is there any economic distinction between a 'tax' and a 'fee' ?
Consider Figure 6-3. Suppose that the government raises its sales tax from 6 percent to 8 percent. Are the predictions of static analysis and dynamic tax analysis in agreement on the direction of the change of government's tax revenue? Explain briefly.
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