Which of the following would be most likely to encourage households to save a greater proportion of their income?
a. a reduction in the sales tax rate
b. an increase in the capital gains tax rate
c. an elimination of tariffs (taxes on imported goods)
d. changing to a flat income tax (with a single tax rate charged on all income)
e. changing from an income tax to a consumption tax
E
Economics
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In the long run, new firms can enter an industry and so the supply elasticity tends to be:
A. more elastic than in the short run. B. less elastic than in the short run. C. perfectly inelastic. D. perfectly elastic.
Economics
Refer to Table 18-10. A tax exemption is granted for the first $10,000 earned per year. Suppose you earn $75,000
a. What is the amount of taxes you will pay? b. What is your average tax rate? c. What is your marginal tax rate?
Economics