Question: The government of Utopia plans to offer a transportation tax
The government of Utopia plans to offer a transportation tax credit in which families receive a share of their expenditures on transportation to and from work or school as a reduction in their tax bill. Utopia is considering two forms of this tax credit, one that is fully refundable and one in which the tax credit is limited to the amount of taxes the family pays. Which form of the tax credit is more progressive? Explain.
Answer to relevant QuestionsSuppose that the government adopts a Haig-Simons comprehensive income definition. Will this make employers more likely or less likely to offer employer-provided pension plans or health insurance coverage? Why? The largest tax break for most Americans is the mortgage interest tax deduction, which allows home owners to deduct from their taxable income the amount of money they pay in interest to finance their homes. This tax break is ...You have determined that producers, rather than consumers, will bear the lion’s share of the burden associated with a new tax. How does the elasticity of labor supply influence whether this tax burden will, in turn, be ...The city of Malaise is considering a 10% tax on the revenues of all hotels/motels inside the city limits. Although not completely different from hotels and motels in the nearby suburbs, the ones in Malaise have a distinct ...Consider a social insurance program that is financed by a payroll tax. How does the incidence of this tax differ if the benefits of the insurance program are restricted to workers, rather than if benefits are available to ...
Post your question