ECON 1102 Lecture 11: Chapter 17 Federal Budget

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sangriarat520

24 Feb 2018

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Individual income tax: social security and medicare taxes, corporate income tax. Lower rates provide incentive to invest and create economic growth. Other tax revenues: state and local taxes, overall: half the levels of federal taxes, states raise more of their revenues, about 20% from sales taxes, less progressive than the federal income tax. National debt and deficits: national debt held by the public: all federal debt held outside the united. States government: debt-to-gdp ration about 70, not necessarily high for the u. s. government, has been much higher in the past, deficit: the annual difference between federal spending and revenues, equals the annual change in the national debt. Will the u. s. go bankrupt: the congressional budget office (cbo): "under any plausible scenario, the federal budget is on an unsustainable path, main forces driving the projections, the population is aging resulting in higher social security and. Medicare payments: at start of social security had 42 paying for every one receiving.

Related Questions

46. In a proportional income tax system,

marginal tax rates increase as the level of taxable income increases.

marginal tax rates are the same regardless of the level of taxable income.

everyone pays the same dollar amount in taxes.

marginal tax rates decline as the level of taxable income declines.

47 A tax system that applies a lower marginal tax rate at higher levels of income is

backward.

regressive.

progressive.

proportional.

48 The average tax rate can be calculated by which of the following formulas?

The change in taxes due divided by the change in taxable income

The change in taxable income divided by the change in taxes due

Total taxable income divided by total taxes due

Total taxes due divided by total taxable income

49 Under a progressive income tax system, the marginal income tax rate paid by taxpayers

declines as their incomes increase

. is unrelated to their incomes.

rises as their incomes increase.

is unchanged as their incomes increase.

50 The tax base is the minimum amount of tax revenue that government must collect each year.

the maximum amount of tax revenue that government must collect each year.

the sum of all incomes earned in the United States.

the value of all goods, services, incomes, or wealth subject to taxation.

51 A capital gain is defined as the tax paid when one sells an asset.

the tax rate one pays when one moves into a higher tax bracket.

an unanticipated increase in income.

the positive difference between the sale price and the purchase price of an asset.

52 Corporate profits are

taxed twiceonce by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends.

taxed only when a stockholder sells his or her shares of stock.

taxed at too low a rate.

taxed three timesonce by the corporate tax system, again by the personal tax system, and again as capital gains.

53 Social Security taxes are regressive because

they apply only to rich people.

they are not applied to income beyond a certain amount.

they are applied to welfare recipients.

they are applied to retired people only.

54 The largest share of federal government tax receipts is derived from

excise taxes.

individual income taxes.

corporate income taxes.

social insurance contributions.

55 Local government expenditures depend on which taxes?

Social Security taxes

Local property, sales, and excise taxes

Capital gains taxes

Revenues from licenses and permits

56 When the purchase price of an asset is less than its sale price, then there is a

budget deficit.

corporate income tax.

capital gain.

capital loss.

57 The earnings that a corporation saves for investment in other productive activities are

transfers in kind. c

apital gains.

tax incidence.

retained earnings.

58 Tax incidence refers to

determining who sends the taxes into the government.

the distribution of tax burdens among groups, or who really pays a tax.

the tendency of some people to avoid paying taxes at all.

determining the marginal tax rate applied to any increase in income.

59 Social Security taxes are paid by

neither employers nor employees

both employers and employees.

employers only.

employees only.

ivoryfrog360

According to the two âIn the Newsâ articles and the table below,

In the News: Obama Pitches Tax Hike on the Rich

WASHINGTON: President Barack Obama on Wednesday proposed raising taxes on the wealthiest Americans during a major speech Wednesday outlining his long-term plan to bring the federal budget closer to balance.

"At a time when the tax burden on the wealthy is at its lowest level in half a century, the most fortunate among us can afford to pay a little more," Obama told an audience at George Washington University. . . .

Republicans denounced the proposed tax hikes as a sure way to slow economic growth in the United States.

"It's very ironic that a few days before tax day in this country that the president would be coming out asking people to pay more taxes," said Representative Eric Cantor, the Republican majority leader in the House of Representatives.

I don't think many Americans believe that that's the answer to fix this economy and grow jobs.

Analysis: President Obama proposed ending the "tax break for the rich" by increasing the top marginal tax rate from 35 percent to 39.6 percent.

In the News: The Obamas' Taxes
Gross Income		Deductions
Wages	$ 395,188	State/local taxes	$ 52,527
Interest	8,066	Property taxes	25,742
Dividends	9,997	Mortgage interest	49,945
Tax refunds	1,151	Charity	245,075
Book royalties	1,382,889	Total allowed	$ 373,289
Capital loss	(3,000)
Trust income	1,323
Total income	$1,795,614

Adjustments		Exemptions	$ 14,600
Self-employment tax	$ 18,518	Taxable income	$1,340,207
Pension contribution	49,000	Tax	$ 438,949
	$ 67,518
Adjusted Gross Income	$1,728,096

Tax Bracket	Marginal Tax Rate
$0-8,375	10%
$8,375-34,000	15
$34,000-82,400	25
$82,400-171,850	28
$171,850-373,650	33
Over $373,650	35

Had Obama succeeded in raising the top marginal tax rate, how much more tax would he have paid in 2010?

Instructions: Enter your response to two decimal places.

$

crimsonhound401

According to the two âIn the Newsâ articles and the table below,

In the News: Obama Pitches Tax Hike on the Rich

WASHINGTONâPresident Barack Obama on Wednesday proposed raising taxes on the wealthiest Americans during a major speech Wednesday outlining his long-term plan to bring the federal budget closer to balance.

âAt a time when the tax burden on the wealthy is at its lowest level in half a century, the most fortunate among us can afford to pay a little more,â Obama told an audience at George Washington University. . . .

Republicans denounced the proposed tax hikes as a sure way to slow economic growth in the United States.

âItâs very ironic that a few days before tax day in this country that the president would be coming out asking people to pay more taxes,â said Representative Eric Cantor, the Republican majority leader in the House of Representatives.

âI donât think many Americans believe that thatâs the answer to fix this economy and grow jobs.â

Analysis: President Obama proposed ending the "tax break for the rich" by increasing the top marginal tax rate from 35 percent to 39.6 percent.

In the News: The Obamas' Taxes
Gross Income		Deductions
Wages	$ 395,188	State/local taxes	$ 52,527
Interest	8,066	Property taxes	25,742
Dividends	9,997	Mortgage interest	49,945
Tax refunds	1,151	Charity	245,075
Book royalties	1,382,889	Total allowed	$ 373,289
Capital loss	(3,000)
Trust income	1,323
Total income	$1,795,614

Adjustments		Exemptions	$ 14,600
Self-employment tax	$ 18,518	Taxable income	$1,340,207
Pension contribution	49,000	Tax	$ 446,716
	$ 67,518
Adjusted Gross Income	$1,728,096

Tax Bracket	Marginal Tax Rate
$0-8,375	10%
$8,375-34,000	15
$34,000-82,400	25
$82,400-171,850	28
$171,850-373,650	33
Over $373,650	35

Had Obama succeeded in raising the top marginal tax rate, how much more tax would he have paid in 2010?

Instructions: Enter your response to two decimal places.

plumsheep807

ECON 1102 Lecture 11: Chapter 17 Federal Budget

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