Scenario 20-1
The government is proposing switching from a progressive tax system in which families pay 15% of the first $50,000 earned, 25% of the next $50,000 earned, and 35% of any income over $100,000 to a tax system in which every family pays 20% of their income less $20,000.
-Refer to Scenario 20-1. What would the libertarians think of the proposed policy change?
A) They would favor the current progressive policy over the proposed policy because it accounts for diminishing marginal utility.
B) They would favor the proposed tax policy over the current progressive policy because it would result in a negative tax for the poorest families.
C) They would favor the current progressive tax policy over the proposed policy because it rewards those who work the hardest.
D) They would oppose both tax policies because both redistribute income.
Correct Answer:
Verified
Q139: Economists study poverty and income inequality to
Q166: Scenario 20-1
ā
The government is proposing switching from
Q208: The income distribution in the United States
Q209: The 2011 U.S. distribution of income shows
Q210: Comparing the United States household income distribution
Q211: Libertarians believe that
A)the government should choose just
Q212: Which of the following pholitical philosophies would
Q214: Which of the following is not a
Q215: Based on U.S. income data from 2011,
Q216: Scenario 20-2
The government is proposing switching from
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