Question 1:
My advice to my friend would depend on what type of tax is being imposed on him. If it’s a non-marginal tax I would advise him no to accept the new job offer. The reason why is the (Unit 2 Video Engager) States, “$90,000 puts you in the 10% tax bracket which means you're paying $9,000 per year in taxes and $100,000 but it puts you in the 20% tax bracket, paying 20,000 a year.” This means that if he accepted this job offer with non-marginal tax rates he would be earning less per year. If the tax imposed is marginal then I would advise him to accept the job offer. The reason why is that he would not take home less money because he earned more. Marginal tax rates as defined by (Unit 2 Video Engager) are “you only pay the higher tax …show more content…
The definition of flat tax is “is one in which all income levels pay the same percentage of their income in taxes”, according to (Unit 2 Video Engager). The definition of progressive tax is “one in which those with the highest levels of income pay the highest percentage of their income in taxes”, according to (Unit 2 Video Engager). Sales tax is considered a regressive tax because the cost of essential items for such as food, clothing, and gas make up a high percentage of a poor person’s income. Texas should not adopt an income tax to make the tax system less regressive. The reason why is that wealthy people also have to pay sales tax. Even though the sales tax makes up a bigger part of a poor person’s income if you impose an income tax it will make people not work as hard. Having no income tax gives people motivation to make more money when they know that sales tax will be the most money they will have to …show more content…
Taxes redistribute money from the consumer to the government. It causes people to have less money than they would otherwise. The government also affects economic activity through import restrictions. Quotas and tariffs are examples of import restrictions. A quota is a limit on the amount of imports entering a country and a tariff is when imports are taxed to make them less appealing. A wholesale interest rate also affects government spending. Wholesale interest rates is when the central bank loans out money to retail banks, which then loan out their money to consumers and producers at a higher price. Government spending also affects tax rates. The revenue from taxes spent from the government affects the economy. One positive aspect of the government being involved in the economic system is it keeps the government from crashing. It prevents situations such as the great depression from happening again. The negative aspect of government intervention is that it causes people to not work as hard. An example of this is non-marginal tax. I believe the government should be heavily involved in economic activity, but not to the point when people do not work hard. I think they should impose taxes, but a tax like the non-marginal tax. The Government should create opportunities for people and inspire them to achieve their goals. The Government should also give the economy a choice to grow. The reason why I think the government
My advice to my friend would depend on what type of tax is being imposed on him. If it’s a non-marginal tax I would advise him no to accept the new job offer. The reason why is the (Unit 2 Video Engager) States, “$90,000 puts you in the 10% tax bracket which means you're paying $9,000 per year in taxes and $100,000 but it puts you in the 20% tax bracket, paying 20,000 a year.” This means that if he accepted this job offer with non-marginal tax rates he would be earning less per year. If the tax imposed is marginal then I would advise him to accept the job offer. The reason why is that he would not take home less money because he earned more. Marginal tax rates as defined by (Unit 2 Video Engager) are “you only pay the higher tax …show more content…
The definition of flat tax is “is one in which all income levels pay the same percentage of their income in taxes”, according to (Unit 2 Video Engager). The definition of progressive tax is “one in which those with the highest levels of income pay the highest percentage of their income in taxes”, according to (Unit 2 Video Engager). Sales tax is considered a regressive tax because the cost of essential items for such as food, clothing, and gas make up a high percentage of a poor person’s income. Texas should not adopt an income tax to make the tax system less regressive. The reason why is that wealthy people also have to pay sales tax. Even though the sales tax makes up a bigger part of a poor person’s income if you impose an income tax it will make people not work as hard. Having no income tax gives people motivation to make more money when they know that sales tax will be the most money they will have to …show more content…
Taxes redistribute money from the consumer to the government. It causes people to have less money than they would otherwise. The government also affects economic activity through import restrictions. Quotas and tariffs are examples of import restrictions. A quota is a limit on the amount of imports entering a country and a tariff is when imports are taxed to make them less appealing. A wholesale interest rate also affects government spending. Wholesale interest rates is when the central bank loans out money to retail banks, which then loan out their money to consumers and producers at a higher price. Government spending also affects tax rates. The revenue from taxes spent from the government affects the economy. One positive aspect of the government being involved in the economic system is it keeps the government from crashing. It prevents situations such as the great depression from happening again. The negative aspect of government intervention is that it causes people to not work as hard. An example of this is non-marginal tax. I believe the government should be heavily involved in economic activity, but not to the point when people do not work hard. I think they should impose taxes, but a tax like the non-marginal tax. The Government should create opportunities for people and inspire them to achieve their goals. The Government should also give the economy a choice to grow. The reason why I think the government