« previous next »

Author Question: The payroll tax rate is 12.4 on an amount of income adjusted annually for inflation called the wage ... (Read 344 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 Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

The anterior pituitary is sometimes called the master gland because it secretes many hormones that r The anterior pituitary is sometimes called the master gland because it secretes many hormones that r
A nurse adjusts the rate of a client’s IV. A nurse adjusts the rate of a client’s IV.
Race-Ethnicity and Income Extremes Race-Ethnicity and Income Extremes
Canister pressure should be adjusted to 5 PSI below system fuel pressure. An alternative for ... Canister pressure should be adjusted to 5 PSI below system fuel pressure. An alternative for ...
The relationship of substrate con- version (as measured by optical density) to the amount of patient ... The relationship of substrate con- version (as measured by optical density) to the amount of patient ...
Saving Rates by Income Quintile, 2003 Saving Rates by Income Quintile, 2003
Video: EpiPen Animation (Part 2)

For a complete list of videos, visit our video library