1. Florida levies the following taxes: a 5.5 percent corporate income tax; a 6 percent sales tax; taxes of 4¢ a gallon on gasoline, 33.9¢ a pack on cigarettes, $0.48 a gallon on beer, and $2.25 a gallon on wine; and property taxes that vary across the counties and range from 1.4 percent to 2.0 percent of property values. Classify Florida’s taxes into progressive, proportional, and regressive taxes.

2. Explain why Phil Mickelson pays his own Social Security tax and the PGA (the Professional Golfers’ Association) pays none of it.

3. Is a tax on land rent or a tax on capital income more inefficient? Explain.