A commentator recently suggested the following welfare reform: “Scrap the failing welfare programs. . . . Ensure that everyone has a basic income. Then simplify the tax code to restore the incentives . . . for everyone to work hard” [Ferguson, 2012]. Evaluate this proposal. Take into account that the “basic income” grant would have to be phased out in order to make the program feasible from a budgetary standpoint. How would that affect incentives to “work hard?”
Answer to relevant QuestionsPhilip’s demand curve for housing is shown in the following figure. (Assume that quantity of housing is measured simply by the number of square feet. Other aspects of quality are ignored.) The market price of housing is P1 ...Since the 1980s, individuals’ UI benefits have been subject to the federal personal income tax (but not Social Security taxes). However, in 2009, the taxation of UI benefits for certain individuals was temporarily ...Suppose that the demand curve for a particular commodity is QD =a- bP , where QD is the quantity demanded, P is the price, and a and b are constants. The supply curve for the commodity is QS =c- dP , where QS is quantity ...Responding to a congressional proposal to impose a 5 percent tax on elective cosmetic surgery, a spokesman for a company that pro-duces Botox said such a tax would result in “ a very marginal” increase on the $ 440 cost ...In an effort to reduce alcohol consumption, the government is considering a $ 1 tax on each gallon of liquor sold (the tax is levied on producers). Suppose that the supply curve for liquor is upward sloping and its equation ...
Post your question