« previous next »

Author Question: The payroll tax rate is 12.4 on an amount of income adjusted annually for inflation called the wage ... (Read 340 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?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

The Inverted Income Pyramid: The Proportion of Income Received by Each Fifth of the U.S. Population The Inverted Income Pyramid: The Proportion of Income Received by Each Fifth of the U.S. Population
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
How to convert units of any rate to another (Part 2) How to convert units of any rate to another (Part 2)
Relationship between Income Inequality and Sociopolitical Instability Relationship between Income Inequality and Sociopolitical Instability
The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho The rate of replacement of a recessive allele d by the dominant allele D by mutation alone. Even tho
Main mechanism of carbon dioxide transport and exchange. A lesser amount of CO2 travels to the lungs Main mechanism of carbon dioxide transport and exchange. A lesser amount of CO2 travels to the lungs
Video: What is Reverse Osmosis?

For a complete list of videos, visit our video library