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 or services using pretax dollars increase or decrease equity in the U.S. tax system? Explain.
Answer to relevant QuestionsOregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal ...The demand for rutabagas is Q = 2,000 – 100P and the supply of rutabagas is Q = –100 + 200P. Who bears the statutory incidence of a $2 per unit tax on the sale of rutabagas? Who bears the economic incidence of this tax? Consider 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? The government of Washlovia wants to impose a tax on clothes dryers. In East Washlovia the demand elasticity for clothes dryers is –2.4 while in West Washlovia the demand elasticity is –1.7. Where will the tax ...Festwalia has two types of workers: low-skill workers, who earn $10 per hour, and high-skill workers, who earn $20 per hour. The government of Festwalia currently imposes a 20% proportional tax on all labor earnings. It is ...
Post your question