Professor Slither attended the Antarctic Economic Association meetings. She is able to fully deduct from her taxes the hotel expenses that she incurred, but can deduct only half of the meals expenses that she incurred. Why does the U.S. tax code make this distinction? Does this tax policy make sense, from a Haig-Simons perspective?
Answer to relevant QuestionsEd and Wendy are a married couple with no children. Each earns $85,000 per year, and their combined household adjusted gross income is $170,000. John and Kristen also have $170,000 in combined household adjusted gross income ...Your employer allows you to purchase a parking permit with “pretax dollars”—that is, you don’t have to pay taxes on the money that you used to purchase this permit. Does allowing some people to purchase certain goods ...The demand for rutabagas is still Q = 2,000 – 100P and the supply is still Q = –100 + 200P, as in Question 2. Governor Sloop decides that instead of imposing the $2 sales tax described in Question 2, the government will ...The elasticity of demand for maracas is –2.0 and the elasticity of supply is 3.0. How much will the price of maracas change with a per-unit tax of $2? Who bears the larger burden of the tax, consumers or producers? Bob’s Bees is a small boutique honey manufacturer in Massachusetts. Bob’s neighbor is Jon’s Jams. The more honey Bob produces, the more jam Jon is able to produce; that is, there is a positive production ...
Post your question