Exam 12: The Design of the Tax System

Suppose the government taxes 30 percent of the first $70,000 and 50 percent of all income above $70,000. For a person earning $200,000, the marginal tax rate is

Public schools, which educate most students through high school, are paid for primarily by

Suppose Max values a concert ticket at $45. Charles values the same concert ticket at $40. The pre-tax price of a concert ticket is $30. The government imposes a tax of $5 on each concert ticket, and the price rises to $35. The deadweight loss from the tax is

From 1950 to today, government spending on Social Security, Medicare, and Medicaid as a percentage of GDP has

Table 12-9 United States Income Tax Rates for a Single Individual, 2012 and 2013. -Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What is her average tax rate in 2013?

Suppose Luke values a scoop of Italian gelato at $4. Leia values a scoop of Italian gelato at $6. The pre-tax price of a scoop of Italian gelato is $2. The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is

In choosing the form of a tax, there is often a tradeoff between

A country is using a proportional tax when

Lump-sum taxes are equitable but not efficient.

Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers?

If a poor family has three children in public school and a rich family has two children in private school, the benefits principle would suggest that

Scenario 12-1 Ken places a $20 value on a cigar, and Mark places a $17 value on it. The equilibrium price for this brand of cigar is $15. -Refer to Scenario 12-1. Suppose the government levies a tax of $3 on each cigar, and the equilibrium price of a cigar increases to $18. Because total consumer surplus has

The amount of income tax owed by a family is

The ability-to-pay principle claims that a person should pay taxes according to

"A $1,000 tax paid by a poor person may be a larger sacrifice than a $10,000 tax paid by a wealthy person" is an argument in favor of

A tax system with little deadweight loss and a small administrative burden would be described as

Table 12-18 United States Income Tax Rates for a Single Individual, 2009 and 2010. -Refer to Table 12-18. What type of tax structure did the United States have in 2009 for single individuals?

Which of the following is a characteristic of a more efficient tax system?

In 2011, the largest source of receipts for state and local governments was individual income taxes.

Who pays a corporate income tax?