The Federal Debt Reduction Commission recommended that both mortgage-related subsidies and tax breaks from the federal agencies that help middle- and lower-income families buy homes be scaled back or eliminated. The Obama administration has proposed taking the latter step, eliminating Fannie Mae and Freddie Mac but doing nothing about the incentives and tax breaks that benefit wealthier taxpayers. Is their proposal ethical? Why or why not?

Peter got a job offer: he will get $15,000 for every three months before tax, but he has two options: He can pay $ 480 per month for taxes, no discount there, so what’s the tax rate (for every three months)?

President Clinton has seized the cigarette excise tax as an expedient and politically correct means of increaseing federal revenue. In 1994 the federal government took in $12 billion from the present 24-cents-per-pack tax. If the tax were quadrupled to $1 a pack, Clinton figures tax revenues would increase by more than $50 billion over three years. Those added revenues would help finance the heath care reforms the president so dearly wants. Professor Gary Becker, a Nobel Prize-winning economist at the University of Chicago,says Clinton math is wrong. The White House assumed that cigarettes sales would drop by 4 percent for every 10 percent increase in prices, not the full adjustment of smokers' behavior. Over a three-year period, cigarette consumption is likely to decline by 8 percent for every 10 percent increase in price-twice as much as Clinton assumed.As a result,the $1-a-pack tax will bring in much less revenue than President Clinton projected.   According to Professor Becker, by…

Social Security is a 6.2 % tax income up to a level that is matched by one’s employer? True or False

Suppose that initially a seller's "bottom line" asking price for a particular car is equal to $23,000.  However, a new tax is instituted that will tax the seller in the amount of 10% on the sale.  What is the seller's new "bottom line" after factoring in the new tax?

Increasing the current tax rate is likely to: decrease the competitiveness of the state decrease the professionals’ willingness to stay in or come to the state cause lesser incentive to work and demotivate people decrease productivity What can the government do to deal with these problems?

The personal income and payroll taxes are already too high. I think business should share A larger share of the burden. Have you ever heard of a politician make a statement like this? Does thisstatement reflect sound economics. Why or why not?

Provide the two benefits to the U.S. government of granting income tax credits.

Identify the link of necessity and luxury goods to tax revenue

the current social security system will ensure that the young people of today will have social security benefits when they retire? true or false