Question: Use the data in the table below to answer the questions that follow. Year Vehicle Miles Traveled (Trillions) 2015: 3.10 2016: 3.17 2017: 3.21 2018:

Use the data in the table below to answer the questions that follow.

Year Vehicle Miles Traveled (Trillions)

2015: 3.10

2016: 3.17

2017: 3.21

2018: 3.24

2019: 3.26

2020: 2.90

2021: 3.23

2022:

What is the average growth rate in vehicle miles traveled? Report your answer with two decimal places and include the percent sign: for example; 4.56%

Using the average growth rate, what is the forecasted VMT in 2022? Report your answer with two decimal places.

Suppose VMT is taxed at $0.02 per mile. What is the forecasted revenue for 2022? Report your answer with two decimal places.

Suppose the government is proposing to increase the tax rate to $0.05 per mile. What is the estimated revenue for 2022 if you use the static scoring method? Report your answer with two decimal places.

What is the static revenue?

What is the static estimate?

Suppose the government is proposing to increase the tax rate from $0.02 to $0.05 per mile. What is the estimated revenue for 2022 if you use the micro-dynamic scoring method? Assume the tax elasticity of VMT is -0.3 and complete the following steps. Report your answer with two decimal places.

What is the percentage change in the tax rate?

What is the percentage change in the tax base?

What is the new tax base for 2022?

What is the new 2022 tax revenue?

What is the estimate?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

I have a Project I am working on for Portfolio Management. I finished most of the data entry and creating of tabs, but I still have about 30% of the project that I need help on. I expect it to take...

Data Analytics Case Deferred Taxes and the Tax Cuts and Jobs Act of 2017 In the Data Analytics Cases in the previous chapter, we applied Tableau to examine a data set and create charts to examine two...

Chapter 16 Data Analytics Case Deferred Taxes and the Tax Cuts and Jobs Act of 2017 LO164 Data analytics is the process of examining data sets in order to draw conclusions about the information they...

You are back at it again as a quantitative analyst! This time a small college, Southwest College (SWC) has hired you to make sense of some data they have obtained. The administrators have a lot of...

A B D K L M N O Month Year |Day 10 Quantity 7 20 25 380 220 4 280 1 380 00 ONS VAN 6 26 200 DO NOT MAKE ANY MODIFICATION (CHANGING THE ORDER OF THE COLUMNS, ADDING A NEW CALCULATED COLUMN ETC.) ON...

Answer questions below using the following attached documents. 1. After evaluating the acquisition based on the DCF analysis of both the expected and pessimistic scenarios, should Tim Harris offer...

Please complete the following reports for "kohl's 2017 financial statement" note that the suggested reports have numbers filled in but they do not relate. (Ignore where it says JCPenney on top of the...

Scenario You and your group work for a multi-national consulting firm. Your team is a group of capital budget consultants and are seeking new engagements. You intend on responding to a Request for...

Note: I don't need the whole thing solved, just the approach to how to forecast and what structuring the formulas entails. Thank You! INSTRUCTIONS Use the 2017 data provided, combined with whatever...

Use the case study as shown in the photo and your own research on Peloton to answer the following questions. (500 words each question, total of 2000 words) 1) Using the Business Model Canvas to...

(0, 256) and (7, 23) Find an approximate equation y = abx of the exponential curve that contains the given pair of points. Round the value of a and b to two decimal places.

The data used in Example 43 arc taken from the data set given in DS 12.11.2, which relates the variable % scrap to the number of times that the metal plate is passed through the rollers. It is useful...

The hypothecation agreement allows for which of the following: A The pledging of securities as collateral The changing of margin requirements The terms of the margin loan The right to liquidate...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...