Pros and cons of unemployment insurance. Introduction: Unemployment insurance is the amount of money given to the unemployed people who are unable to find the job. It is a kind of a welfare scheme so that unemployed people can fulfill the basic needs of life.

Question

Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect does the tax treatment of unemployment insurance benefits have on the ability it provides its recipients for smoothing? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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Chapter 7, Problem 4P

To determine

Pros and cons of unemployment insurance.

Introduction:

Unemployment insurance is the amount of money given to the unemployed people who are unable to find the job. It is a kind of a welfare scheme so that unemployed people can fulfill the basic needs of life.

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Unemployment benefits are subject to income taxes. They are not (by default) subject to withholding, or to payroll taxes. Suppose that a particular worker is subject to a payroll tax of 7.65% of her wages; that she pays an average income tax rate of 10%; and that after losing her job, she is eligible to receive 60% of her previous weekly income. (Show Work) (a) What fraction of her take-home paycheck will she receive from unemployment insurance? (b) What effect does the tax treatment of unemployment insurance benefits have on the ability it provides its recipients for smoothing? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

(12.)what impact does inflation have on the value of business ?

Given the following data of monthly salary of an employee : (i) Calculate the real monthly income for each year. (ii) In which year did the employee have the highest purchasing power? (iii) How much salary should he have earned in each of the years to give him the same purchasing power as in the year of his highest real income? year Monthly Salary ($) |Price Index (1997 = 100) 15,000 15,500 16,000 16,500 17,000 %3D 2000 2001 115 120 2002 130 2003 138 2004 144 2005 18,000 150