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Author Question: Welfare and TransfersThe country Scindo has 20 million households. Ten million are poor households ... (Read 250 times)

abcdef9106

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Welfare and Transfers

The country Scindo has 20 million households. Ten million are poor households that each have labor market earnings of $18,000 per year, and ten million are rich households that each have labor market earnings of $81,000 per year. Suppose the government enacted a marginal tax of 35 percent on all labor market earnings above $18,000 and transferred this money to poor households. What is the income for poor households after taxes and redistribution? What is the income for rich households after taxes and redistribution?
◦ $46,350.00, $52,650.00
◦ $40,050, $58,950
◦ $40,050, $52,650.00
◦ $46,350.00, $58,950


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Marked as best answer by abcdef9106 on Nov 23, 2022

H.cope00

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abcdef9106

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Reply 2 on: Nov 23, 2022
Thanks for the timely response, appreciate it


AngeliqueG

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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