Define imputed rental income. Is imputed rental income taxed? Based on your answer, discuss the tax code treatment of homeowners and renters on equity grounds
What will be an ideal response?
Imputed rental income is what an owner-occupied home could be rented for if not owner-occupied. Imputed rental income is not taxed under the current tax code. On equity grounds, the non-taxation of imputed rental income is wrong because it does not treat the owners of rental housing and the owners of owner-occupied houses equally, since those who rent houses have to pay taxes on their rental income.
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Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the graph of the two variables would be
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
A normal good is a good for which the demanded decreases as income decreases, holding everything else constant
Indicate whether the statement is true or false