Over time, more women have become the primary (or sole) wage earners in their households. How does this fact complicate the empirical analysis of the effects of taxation on women’s labor supply?
Answer to relevant QuestionsWhat is likely to happen to overall labor supply if a. the Earned Income Tax Credit (EITC) compensation rate increases from 30% to 50% for each dollar earned? b. the rate of reduction in the EITC phase-out period increases? Congressman Pinkie proposes reducing the tax exemption for children in married families where only one parent works outside the home. Why would this proposal improve equity, from a Haig-Simons perspective? Suppose that the government increases its tax rate on interest earned. Afterward, savings increase. Which effect dominates, the income effect or the substitution effect? Explain. Jack is a 48-year-old consultant who earns $480,000 per year. Hector is a 19-year-old college student who has just finished a summer job that paid him $5,000. Both are planning on putting some of their earnings into IRA ...What is the empirical evidence on whether capital gains tax cuts lead to a permanent increase in capital gains realizations? What does this evidence imply for the prospects of lowering capital gains taxes as a long-term ...
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