Question: In 2012 the Obama administration proposed a set of policies
In 2012, the Obama administration proposed a set of policies that would increase the top income tax rate from 35 percent to approximately 44 percent. By what proportion would this increase the excess burden of the income tax for people in this tax bracket?
Answer to relevant QuestionsIn 2006, several members of Congress argued for eliminating most of the tax reductions that had been enacted during the previous five years. However, virtually no one was in favor of eliminating the “child tax credit,” ...Under the US tax system, capital that is employed in the corporate sector is taxed at a higher rate than capital in the noncorporate sector. This problem will analyze the excess burden of the differential taxation of ...In 2008, New York State increased its tax on cigarettes by $ 1.25 per pack. One commentator noted that “ most cigarettes sold [ in New York] will actually be trucked up from Virginia or shipped from China, by ‘ ...Suppose that a typical taxpayer has a marginal personal income tax rate of 35 percent. The nominal interest rate is 13 percent, and the expected inflation rate is 8 percent. a. What is the real after- tax rate of interest? ...According to one econometric study, “Denmark and Sweden are on the wrong side of the Laffer curve for capital income taxation” [Trabandt and Uhlig, 2009]. Explain what the words “wrong side” mean in this context.
Post your question