Substituted for the current progressive income tax

Assignment Help Financial Management
Reference no: EM13976573

The personal income tax in the United States is very different from a comprehensive income tax. Discuss how income distribution and resource use would change if a flat-rate tax on comprehensive income were substituted for the current progressive income tax.

Reference no: EM13976573

Questions Cloud

How should a business use working capital analysis : How should a business use working capital analysis? Which is more important to the short-term lender: the stock of cash or the flow of cash? Is it possible in today's business to operate with no current liabilities?
Used quarterly compounding rather than annual compounding : Suppose you deposit $1000 into a savings account that pays 8 percent. If the bank compounds interest annually, how much will you have in your account in 4 years? What would your balance be in 4 years if the bank used quarterly compounding rather than..
Indifferent between the two alternatives : Consider the decision you might have to make if you won a state lottery worth $105 million. Which would you choose: a lump-sum payment of %54 million today or a payment of $3.5 million each year for the next 30 years? At what opportunity cost would y..
Attending college and has a part-time job : Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a nest egg to start her off. Michelle works out her budget ..
Substituted for the current progressive income tax : The personal income tax in the United States is very different from a comprehensive income tax. Discuss how income distribution and resource use would change if a flat-rate tax on comprehensive income were substituted for the current progressive inco..
Does the source of taxable revenues make any difference : Given the following information on State A and State B: State A has no state income tax but a high state sales tax. State B has a medium state income tax and a medium state sales tax. Both States receive the same tax revenue per capita. Does one stat..
How much will your last deposit be : You need to accumulate $10000. To do so you plan to make deposits of $1750 per year, with the first payment being made one year from today, in a bank account that pays 6% interest. Your last deposit will be more than $1750 to reach your $10,000 goal...
Debt contract in terms of how finance defines debt : Which of the following contracts is NOT an example of a debt contract in terms of how finance defines debt?
Business plan and management team of new start-up venture : The terms below all refer to interest rate, in one context or another. Which is the correct term for the following situation: an investor studies the financial statements, business plan and management team of a new start-up venture, as well as studyi..

Reviews

Write a Review

Financial Management Questions & Answers

  Difference between lean maintenance and lean production

How does lean maintenance differ from the traditional approach under which a maintenance department has the responsibility for all maintenance functions? Which level on the maintenance performance hierarchy would you expect to find a lean maintenance..

  Best estimate of the stocks current intrinsic value

Paradise Tours, Inc. just paid a dividend of $3.50. Analysts expect the company's dividend to grow by 35% this year, by 20% in year 2, and at a constant rate of 5% in Year 3 and thereafter. The required rate of return on PTI's stock is 15.00%. What i..

  About the cost of equity

The cost of equity: Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from today. If the firm's growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if th..

  Targeted weighted average cost of capital

Blue Inc. desires a weighted average cost of capital of 13.2 percent. The firm has an after-tax cost of debt of 4.8 percent and a cost of equity of 15.2 percent (assume that these costs do not change with the capital structure). What debt-equity rati..

  Take tuition stabilization plan-taking cheaper alternative

Your sending your daughter to a prestigious private college starting next year. She will attend for four years. The current cost for one year is $60,000, but is expected to rise 2% per year over the next 10 years. If your investments earn 6% per year..

  Risks involved in international credit management

Why are the risks involved in international credit management more complex than those associated with purely domestic credit sales? What examples can you provide from financial periodicals or your own experience?

  Number of independent commercial banks might fall sharply

Provide three reasons why the number of independent commercial banks might fall sharply over the next few years.

  What is the effective cost of borrowing in this case

Your firm has a average collection period of 32 days. Current practice is to factor all receivables immediately at a discount rate of 1.35 %. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

  Comparing the flexible budget to the static budget

A hospital outpatient department budgets for 1,500 visits per year. At the end of the year, the hospital has had 1,200 patient visits. When comparing the flexible budget to the static budget, which of the following will be true?

  Issued common stock incorporating the flotation cost

Barry's stocks are being sold at a current price of $50 and the last dividend paid was $4.19, and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Barry estimates that if he issues new common stock, the flota..

  The minimum number of shares

The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..

  Consistent with the semi-strong form of market efficiency

Geothermal corporation issued a press release before the stock market opened announcing that its earnings are above last year’s earnings. Explain how each of the following individual scenarios could be consistent with the semi-strong form of market e..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd