Suppose that the tax system in Latin American country is calculated such that if Emily's annual income is $400 thousand then she must pay $40 thousand in taxes, while if Emily's annual income is $200 thousand then Emily must pay $34 thousand in taxes. This implies that the tax system in this country is: regressive. O progressive. optional. O proportional.

Use the table below to choose the correct answer. Income Таx (dollars) (dollars) 10,000 2,000 20,000 4,000 40,000 8,000 The tax schedule shown here is regressive. O proportional. O progressive. O proportional up to $20,000 and regressive beyond that.

Suppose taxes are related to income as follows: Income Taxes $1,000 $200 $2,000 $350 $3,000 $450 a. What percentage of income is paid in taxes at each level? b. Is the tax rate progressive, proportional, or regressive? c. What is the marginal tax rate on the first $1,000 of income? The second $1,000? The third $1,000?

4.7) Consider a national income tax that is structured as follows: Income Marginal tax rate $0-$10,000 0%   $10,001-- $60,000 5%   $60,001and above 0%   For each of the following workers determine his or her marginal and average tax rate d. Would you describe the tax system as proportional, regressive, or progressive? Explain

A proportional tax, sometimes referred to as a flat tax, is a kind of income tax wherein all taxpayers are taxed at the same percentage rate, no matter how high or low their income. A proportional tax system means that everyone experiences the same tax rate, whether low, middle, or high-income. Those who support a proportional tax argue that the system is fairest because the rules are simple and straightforward and no one is exempt; however, there is a  huge con of proprtional taxes.  Explain what that is.     Essay

The negative income tax has been proposed as a means The negative income tax has been proposed as a means of increasing both the efficiency and the equity of Canada’s tax system (see Applying Economic Concepts 18-1 on page 465). The most basic NIT can be described by two variables: the guaranteed annual income and the marginal tax rate. Suppose the guaranteed annual income is $8000 and the marginal tax rate on every dollar earned is 35 percent. With this NIT, after-tax income is given by After-tax income = 8000 + (1 – 0.35) X (Earned income) a. On a scale diagram with after-tax income on the vertical axis and earned income on the horizontal axis, draw the NIT relationship between earned income and after-tax income. b. What is the level of income at which taxes paid on earned income exactly equal the guaranteed annual income? c. The average tax rate is equal to total net taxes paid divided by earned income. Provide an algebraic expression for the average tax…

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 35 billion bottles of wine were sold every year at a price of $5 per bottle. After the tax, 28 billion bottles of wine are sold every year; consumers pay $6 per bottle (including the tax), and producers receive $3 per bottle. The amount of the tax on a bottle of wine is S burden that falls on producers is S |per bottle. Of this amount, the burden that falls on consumers is S per bottle, and the per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True O False