Marginal tax rates were cut substantially during the 1980s, and although rates were increased in the...

Marginal tax rates were cut substantially during the 1980s, and although rates were increased in the early 1990s, the marginal rates applicable in the highest income brackets were still well below the top rates of the 1960s and 1970s. How did the lower rates of the 1980s and 1990s affect the share of taxes paid by high income taxpayers? Were the lower rates of the 1980s and the 1990s good or bad for the economy?

Expert Solution

Rahul Sunny answered 2 years ago

40. To reduce income inequality, should the marginal tax rates on the top 1% be increased?

In 2012, presidential candidate Mitt Rommey proposed extending the cut in marginal income tax rates passed...

In 2012, presidential candidate Mitt Rommey proposed extending the cut in marginal income tax rates passed during the Bush administration. Explain why theory alone cannot predict how labor supply would be affected if this proposal were implemented. If there were no political or legal impediments to doing so, how could you design an experimental study to estimate the impact of lower marginal tax rates on labor supply?( Says theoretical approach, what the process and the consequences are, and premise)

1. A tax cut to the tax rates may not stimulate the economy if: a)It is...

1. A tax cut to the tax rates may not stimulate the economy if: a)It is permanent and increases permanent disposable income b) decisions for consumption are based only on current income instead of permanent income c) it is distributed evenly in the population of the economy d) it is temporary and thus doesn't change the permanent disposable income e) It is too big 2. An economy that is headed into recession decides to start an expansionary fiscal policy. 6...

Define and Discuss Average and Marginal Tax rates

In 1986, the U.S. federal income tax system changed marginal tax rates so that the marginal...

In 1986, the U.S. federal income tax system changed marginal tax rates so that the marginal tax rate fell from 50 to 33 percent. Given the fact that employment based health insurance is tax exempted, how will this affect the demand for health insurance for employees with compensation of $6000 a month and cost of insurance being $100? Support your answer with calculations.

How can Congress raise or lower effective tax rates without changing marginal tax rates?

The United States, a large open economy has substantially increased government spending and decreased taxes during...

The United States, a large open economy has substantially increased government spending and decreased taxes during the early 1980s. Not only has that changed national saving in the United States, but also in the rest of the world. (a) What was the consequence for the world real interest rate? (b) What was the consequence of the US policy on Norway, a small open economy? Use a model of a long-run small open economy with perfect capital mobility to discuss what...

Which statement is correct with respect to marginal and average tax rates under a progressive tax...

Which statement is correct with respect to marginal and average tax rates under a progressive tax structure? Multiple Choice Generalizations cannot be made. The question can only be answered with reference to the tax situation of a specific taxpayer. At very low levels of taxable income, a taxpayer's marginal and average tax rates will be the same. At very high levels of taxable income, a taxpayer's marginal and average tax rates will be the same. For most taxpayers, the average...

Congress did not substantially change Federal income tax rates between 1993 and 2000. Visit the Bureau...

Congress did not substantially change Federal income tax rates between 1993 and 2000. Visit the Bureau of Economic Analysis Web site, www.bea.gov (Links to an external site.)Links to an external site.. You can find Table 3.2 on the Federal government's current receipts and expenditures at: http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1 (Links to an external site.)Links to an external site. By selecting the "Modify" icon, you can select the time period of 1993-2000. Find the annual revenues from the Federal personal income tax from 1993...

What would be the marginal and average tax rates for a corporation with an income level...

What would be the marginal and average tax rates for a corporation with an income level of $85,000? (Do not round intermediate calculations. Enter the marginal tax rate as a whole percent. Enter the average tax rate as a percent rounded to 2 decimal places.)

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