Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax incidence perspective?
Answer to relevant QuestionsConsider a labor market in which workers are paid the minimum wage. When will it matter for tax incidence whether a payroll tax is imposed on workers or on employers? In which case will workers bear a larger share of the tax burden, when taxes are imposed in a single locality or when taxes are imposed throughout an entire state? Why will your answer differ between the short run and the ...The city of Johnstown decides to build a new stadium to attract a basketball team from the city of Rosendale. One economic advisor suggests that the stadium should be financed by a 2-year sales tax of 10%, while another ...What is the theoretical justification for a so-called Laffer curve? Based on the empirical evidence described in the text, should the U.S. raise or lower its tax rates in order to increase tax revenues? Explain. How does making child care costs tax-deductible reduce the “tax wedge” associated with the fact that market work is taxed but home work is not? Does making child care costs deductible increase or decrease social ...
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