Question

In: Economics

Briefly argue against high tax rates on the rich from an equity standpoint, and then separately,...

Briefly argue against high tax rates on the rich from an equity standpoint, and then separately, from an efficiency standpoint.

Solutions

Expert Solution

Regardless of whether one backing, the perfect of equity pay tax collection as a method for diminishing imbalances of riches and influence, it is as yet important to offset these objectives with the need to keep up a solid development rate for the economy. For most genuine exercises, for example, reserve funds rates or the work/recreation tradeoff there is pretty much nothing proof of an unfriendly effect of current assessment rates on the rich, one must keep in mind that these rates were very low by chronicled principles. What's more, such high rates lead to gigantic weight on citizens to devise methods for lessening their expense risk, which thus leads to deadweight misfortunes in the type of ineffective interests in different expense shirking schemes. While the expected declining peripheral utility of pay underpins redistribution, any countervailing productivity misfortunes apply just at the edge. Since high duty rates on inframarginal pay don't affect work choices, they raise income for redistribution with no effectiveness cost. In this manner, there ought to be high expense rates at a range in which there are numerous citizens for which the range is submarginal, in respect to the number of citizens at the edge inside that go. In any case, the duty rate ought to be low in the salary run where there are generally peripheral citizens—i.e., the higher salary ranges.

Any reasonable person would agree that since the 1950s, and much more so since the 1980s, scholastic lawful composition on tax assessment has been overwhelmed by productivity issues and by the ideal duty approach. This reflects changes in open financial aspects, which, during a similar period, moved its regard for concentrate essentially on growth and efficiency.


Related Solutions

It is argue that if a rich high wage country such as the United States were...
It is argue that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico’s. What do you think about this argument?
Explain why some argue that income tax loopholes primarily benefit the rich.
Explain why some argue that income tax loopholes primarily benefit the rich.
From a Financial Managers standpoint , how might the financial manager argue that this case is...
From a Financial Managers standpoint , how might the financial manager argue that this case is ethical and how might they argue it is unethical? Both sides of the argument. CASE: Trigon Blue Cross/Blue Shield (Copayments) When most people are told they owe a coinsurance payment on a medical bill, they simply grimace and write a check; not Gerald Haeckel, a retiree from Richmond, Virginia. He wanted proof that he was not paying more than the 20 percent portion that...
What are the reasons for and against treating agriculture differently from a legal and policy standpoint?...
What are the reasons for and against treating agriculture differently from a legal and policy standpoint? (
What are the reasons for and against treating agriculture differently from a legal and policy standpoint?...
What are the reasons for and against treating agriculture differently from a legal and policy standpoint? (2) Should agriculture be exempted from environmental, labor, and antitrust laws?
Do higher tax rates on the rich retard economic growth and what effect if any a...
Do higher tax rates on the rich retard economic growth and what effect if any a more progressive tax structure has on income distribution.
1) Evaluate the following taxes from the standpoint of vertical and horizontal equity. a. A 25...
1) Evaluate the following taxes from the standpoint of vertical and horizontal equity. a. A 25 cent per gallon tax on milk b. A tax on stock market transactions c. A sales tax on men’s clothing d. A tax on cigarettes
From a tax standpoint, would an Uber driver prefer to be considered an “employee” of Uber...
From a tax standpoint, would an Uber driver prefer to be considered an “employee” of Uber or an “independent business owner”? State the various advantages and disadvantages, if any, of each such status. Limit you answer only to tax considerations, including (but not necessarily limited to) depreciation and retirement saving considerations.
Briefly explain what is meant by “non-functional requirements” and why they are documented separately from the...
Briefly explain what is meant by “non-functional requirements” and why they are documented separately from the functional requirements.
Argue for or against, “Outliers negatively effect data analysis and should be removed from the results.”
Argue for or against, “Outliers negatively effect data analysis and should be removed from the results.”
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT