What should happen to the current level of taxes

Reference no: EM131130690

Tax Smoothing or Strategic Tax Policy? Assume the pressures of an aging population and increases in health-care costs will increase total federal spending in the future significantly.

a. Under the theory of tax smoothing, what should happen to the current level of taxes if future spending is scheduled to rise?

b. Now suppose future spending increases are not inevitable and that, as a practical matter, you believe Congress will spend whatever revenue it collects. Would you still recommend tax smoothing?

Reference no: EM131130690

Questions Cloud

Identify the organization and target audience the plan : Create a six -to eight-page corporate policy to foster creative thinking in a real-world organization.

Opens new product line and requires initial outlay : A company is considering a 5-year project that opens a new product line and requires an initial outlay of $85,000. The assumed selling price is $97 per unit, and the variable cost is $63 per unit. Fixed costs not including depreciation are $20,000 pe..

How does acceptable risk affect injury reduction goals : The stated primary purpose of Z10 is to reduce the risk of occupational injuries, illnesses, and fatalities. As noted in the course text, zero risk is not likely to be achievable, so acceptable risk levels must be defined. What about a goal of zer..

Example of a different data collection method : Give one example of a different data collection method used in evidence based practice in Nursing. What variable was this method used to measure?

What should happen to the current level of taxes : Now suppose future spending increases are not inevitable and that, as a practical matter, you believe Congress will spend whatever revenue it collects. Would you still recommend tax smoothing?

A certain highway with separate roadways : At night, vehicles circulate on a certain highway with separate roadways according to a Poisson process with parameter λ = 2 per minute (in each direction).

What effect will this have on the housing market : As a reaction to problems in the subprime area, lenders are already tightening lending standards. What effect will this have on the housing market?

Significantly increase the flow of a certain river : During the rainy season, we estimate that showers, which significantly increase the flow of a certain river, occur according to a Poisson process with rate λ = 4 per day. Every shower, independently from the others, increases the river flow during..

What difference between avoiding a risk and accepting a risk : What are the differences between bottom-up and top-down estimating approaches? Under what conditions would you prefer one over the other?

User Account

All Pages