Exam 12: The Design of the Tax System

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

The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000. Karen paid $6,000 in taxes. What were her marginal and average tax rates?

Which of the following are taxed?

An efficient tax system is one that imposes small

Table 12-13 The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes. -Refer to Table 12-13. In this economy Tax C exhibits

Table 12-6 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-6. For this tax schedule, what is the average tax rate for an individual with $49,000 in taxable income?

In 2011, approximately what percentage of the U.S. federal government's receipts came from individual income taxes?

Suppose that in 2020 the average citizen's federal tax bill is $9,372, and total federal spending is $10,824 per person. In 2020, the federal government will have

Table 12-7 The following table shows the marginal tax rates for unmarried individuals for two years. -Refer to Table 12-7. For an individual who earned $35,000 in taxable income in both years, which of the following describes the change in the individual's marginal tax rate between the two years?

Table 12-1 -Refer to Table 12-1. Assume that the price of a weekend ski pass is $45 and that the price reflects the actual unit cost of providing a weekend of skiing. How much consumer surplus accrues to Anna and Clem individually?

By law, all states must have a state income tax.

Table 12-4 -Refer to Table 12-4. What is the marginal tax rate for a person who makes $35,000?

Table 12-10 -Refer to Table 12-10. If Si has $100,000 in taxable income, his average tax rate is

With a lump-sum tax,the average tax rate for high income taxpayers will be

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 $1 on each cigar, and the equilibrium price of a cigar increases to $16. What is total consumer surplus after the tax is levied?

Which of the following is not a cost of taxes to taxpayers?

Table 12-6 The table below shows the marginal tax rates for an unmarried taxpayer for various levels of taxable income. -Refer to Table 12-6. For this tax schedule, what is the total tax liability for an individual with $280,000 in taxable income?

The concept that people should pay taxes based on the benefits they receive from government services is called

Table 12-25 -Refer to Table 12-25. Which plan illustrates a progressive tax?

An income tax in which the average tax rate is the same for all taxpayers would be considered a