Exam 9: Public Finance and Public Choice

Most flat tax proposals call for exempting income to a certain minimum level.

Exhibit 9-1 A flat tax plan allows individuals to deduct a standard allowance of $25,000 from their wages.Assume that the flat tax rate is 12%. Refer to Exhibit 9-1.If you were earning $100,000 a year,your average tax rate would be:

Which of the following is generally considered the most regressive type of tax?

If Jim earns $300,000 this year and pays $75,000 in taxes and Sharon earns $80,000 this year and pays $20,000 in taxes,this tax system would appear to be