The payroll tax rate is 12.4% on an amount of income adjusted annually for inflation called the wage base (e.g., $97,500 for the year 2007). Half of the tax is withheld from the employee's pay with the other half being paid by the employer
How might this tax be viewed as regressive?
The argument is that after the cutoff point the average tax rate will actually become smaller with increases in income.
Economics
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Economic growth can be defined as a percentage increase in
A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP.
Economics
Fractional reserve banking takes its name from the fact that banks
a. hold only a fraction of their reserves at the bank itself. b. keep only a fraction of their total deposits on reserve. c. lend only a fraction of their total reserves to customers. d. reserve only a fraction of their activity for lending.
Economics