Suppose the corporate income tax were eliminated and the revenue lost was made up by increasing the payroll tax rate on labor earnings. What would be the impact on labor and capital markets of such a shift in tax policy? What is the likely differential incidence of substituting a payroll tax for an equal-yield corporate income tax?
Answer to relevant QuestionsA prominent senator has calculated the total social benefit of the current amount of space exploration at $3 billion per year. The total social cost of space exploration is currently only $2 billion. The senator argues that ...The following table shows how the marginal benefit enjoyed by John, Mary, Loren, and all other consumers of outdoor rock concerts varies with the number made available by a city government per summer. a. Derive the demand ...Suppose two workers earn labor incomes of $20,000 per year in each of three tax accounting periods. One worker saves 20 percent of her labor earnings in each of the first two periods and spends all her savings and ...The annual return to savings is currently $100 billion per year in a certain nation. The estimated value of wealth in the nation is $1 trillion. Calculate the percentage gross return to savings. Assuming that the supply of ...All voters in a city pay an equal marginal tax rate of $10 per mile of roads paved per year. The federal government has a matching grant program of road paving whereby 75 percent of the cost of road paving is paid. Show how ...
Post your question