Question
In: Economics
As tax rates get higher, at some point, taxes can get so high that the (quantity/price)...
As tax rates get higher, at some point, taxes can get so high that the (quantity/price) effect dominates the(price/quantity) effect, and raising taxes further will (increase/decrease) increase decrease total revenue.
Solutions
Expert Solution
As tax rates gets higher, at some point taxes can gets so high that the quantity effect dominates the price effect, and raising taxes further will decrease total revenue.
Rahul Sunny answered 2 years agoRelated Solutions
Tax low to get high: Should governments should weed taxes down? And why
Tax low to get high: Should governments should weed
taxes down? And why
How is it that a higher tax rate can increase tax revenue in some cases but...
How is it that a higher tax rate can increase tax revenue in
some cases but decrease it in other cases? Relate this to the price
elasticity of demand.
Taxes are costs, and, therefore, changes in tax rates can affect consumer prices, project lives, and...
Taxes are costs, and, therefore, changes in tax rates can affect
consumer prices, project lives, and the value of existing firms.
Evaluate the change in taxation on the valuation of the following
project:
0
1
2
3
1.Initial Investment
100
2. Revenues
100
100
100
3. Cash operating costs
50
50
50
4. Tax depreciation
33.33
33.33
33.33
5. Income pretax
16.67
16.67
16.67
6. Tax at 40%
6.67
6.67
6.67
7. Net income
10
10
10
8. After-tax salvage...
Taxes are costs, and, therefore, changes in tax rates can affect consumer prices, project lives, and...
Taxes are costs, and, therefore, changes in tax rates can affect
consumer prices, project lives, and the value of existing firms.
Evaluate the change in taxation on the valuation of the following
project:
0
1
2
3
1.Initial investment
100
2.revenues
100
100
100
3.cash operating costs
50
50
50
4.tax depreciation
33.33
33.33
33.33
5.income pretax
16.67
16.67
16.67
6.tax at 40%
6.67
6.67
6.67
7.net income
10
10
10
8. after -tax salvage
15
9. cash flow (7+8+4-1)...
People argue that a higher tax on gasoline is not necessarily an increase in gasoline taxes....
People argue that a higher tax on gasoline is not necessarily an
increase in gasoline taxes. Explain if you agree or disagree with
this statement.
I need a thorough (at least) two or three paragraphs answer.
What is Supply Side Economics? Do you think that reducing taxes and tax rates can actually...
What is Supply Side Economics? Do you think that reducing taxes
and tax rates can actually increase government revenue? Why or why
not??
Explain the effect of various tax rates and tax rate changes on deferred income taxes.
Explain the effect of various tax rates and tax rate changes on
deferred income taxes.
Explain the effect of various tax rates and tax rate changes on deferred income taxes.
Explain the effect of various tax rates and tax rate changes on
deferred income taxes.
1. Taxes drive a wedge between the: quantity bought and the price received by sellers. price...
1. Taxes drive a wedge between the:
quantity bought and the price received by sellers.
price paid by buyers and the quantity received by sellers.
income of the buyers and the incomes received by sellers.
price paid by buyers and the price received by sellers.
2. Which of the following explains why most people’s marginal
tax rate is higher than their average tax rate?
The average tax rate is the tax you pay on your last dollar
earned, while the...
Explain the effects of a tax on producers on the equilibrium price and quantity in a...
Explain the effects of a tax on producers on the equilibrium
price and quantity in a competitive market. Comment on
the effect on surpluses and the gains from trade.
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