Describe the flat tax, Suppose the United States were to

Describe the flat tax

Assignment Help Management Theories

Reference no: EM131457128

Question: Suppose the United States were to convert its tax system from an income tax to a flat tax. For individuals, there would be no itemized deductions allowed, a high standard exemption (thus low-income taxpayers would not have to file returns), and tax exemptions for dividend and interest income. Businesses could deduct all expenditures on salaries and immediately expense asset acquisition costs. Would such a tax system eliminate incentives to shift activities

(a) from one period to the next,

(b) from one type to another, and

Do you believe a flat tax with no itemized deductions is politically feasible in the United States?

Reference no: EM131457128

Questions Cloud

When should the taxpayer elect to receive the income : Suppose the taxpayer can time when he is to receive $100,000 of income that is fully taxable. Current interest rates are 10% on fully taxable securities.

Restaurant includes items such as labor : The production function of a restaurant includes items such as labor (i.e., cooks, waiters, a manager), capital

Why is random sampling important : According to Cherry(2016) Simple random sampling is "a subset of individuals that are randomly selected from a population of interest".

Discuss the purpose of the legislative action : Discuss the purpose of the legislative action. Describe the problem/problems that the legislative action is trying to solve or prevent.

Describe the flat tax : Suppose the United States were to convert its tax system from an income tax to a flat tax. For individuals, there would be no itemized deductions allowed.

Paragraph on human stem cell and epilepsy : Write one paragraph on each topic - Human stem cell - Epilepsy

Develop a graph and a table that show descriptive statistics : Develop a graph and a table that shows descriptive statistics (central tendency measures and dispersion measures) of the checking balances.

Which firm is the more profitable in this market : Which firm is the more profitable in this market? Does the firm you identified as more profitable have a dominant strategy?

Derive the long run marginal and average cost curves : Derive the long run marginal and average cost curves for each of these producers. What is the long-run market supply of good h?

User Account

All Pages