Example of a tax that might have this property

Assignment Help Business Economics

Reference no: EM13978305

Explain how a decrease in a tax rate might decrease revenue from the tax in the short run but increase the tax revenue in the long run. Give an example of a tax that might have this property. Explain.

Reference no: EM13978305

Questions Cloud

What is effect of corporate income tax on investment level : What is the effect of the corporate income tax on the investment level of a perfectly competitive corporation that finances its investment by debt (with deductible interest) and has no adjustment cost of investment?

What is the maximum profit that the company can earn yearly : What is the current yearly operating income or loss? What is the current break-even point in units and in dollar sales? Assuming that the marketing studies are correct, what is the maximum profit that the company can earn yearly? At how many units an..

Use the fundamental theorem to deduce the formula : Use the Fundamental Theorem (Green's Theorem) to deduce the formula for the area of an ellipse. Hint: find a 1-form whose exterior derivative is dx dy.

What are the main arguments against having such a tax : What are the main arguments based on social efficiency that support having an estate tax similar to the U.S. tax before 2002? What are the main arguments against having such a tax?

Example of a tax that might have this property : Explain how a decrease in a tax rate might decrease revenue from the tax in the short run but increase the tax revenue in the long run. Give an example of a tax that might have this property. Explain.

What are the key qualifications for person filling position : Recruitment and Selection Strategy- What are the key qualifications for a person filling the position? What is the recruitment strategy

Explain what the lock-in effect is for capital gains : Explain carefully how the rate of inflation and the length of the holding period (how long a durable asset is owned) affect the burden of the capital gains tax for the owner of an asset. Explain what the lock-in effect is for capital gains that are t..

The factor-price equalization theorem indicates : “The factor-price equalization theorem indicates that with free-trade the real wage earned by labor becomes equal to the real rental rate earned by landowners.” Is this correct? Why or Why not? Explain.

Careful study of the retail tire market : Suppose that Jack and Jill use a tit-for-tat scheme to encourage cartel pricing. Jill chooses the low price for two successive months, and then switches to the high price. The two firms will deviate from cartel pricing for a total of _________ months..

User Account

All Pages