« previous next »

Author Question: The payroll tax rate is 12.4 on an amount of income adjusted annually for inflation called the wage ... (Read 334 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
How to solve rate problems leading to fractional equations (Question 1) How to solve rate problems leading to fractional equations (Question 1)
The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p
A thin cleft, called the synapse, separates one cell from another. A thin cleft, called the synapse, separates one cell from another.
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
A commercially available DNA microarray, called a GeneChip, marketed by Affymetrix, Inc A commercially available DNA microarray, called a GeneChip, marketed by Affymetrix, Inc
Video: Membrane transport proteins - pores, gated channels and pumps

For a complete list of videos, visit our video library