Author Question: The payroll tax rate is 12.4 on an amount of income adjusted annually for inflation called the wage ... (Read 105 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
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?

Question 2

What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
 
  What will be an ideal response?



jaaaaaaa

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

The argument is that after the cutoff point the average tax rate will actually become smaller with increases in income.

Answer to Question 2

A rent ceiling is a specific example of a price ceiling. A rent ceiling is a government imposed regulation that makes it illegal to charge a rent higher than a specified level. If a rent ceiling is set above the equilibrium rent, it has no effect because it does not make the equilibrium rent illegal.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

For a complete list of videos, visit our video library