at what income is the credit reduced to zero, Public Economics

Assignment Help:

Assume the Working Income Tax Benefit tops up a single individual's income by 25 percent of the amount that employment earnings exceed $3000, up to a maximum payment of $950. Suppose the refundable credit is reduced by 15 percent on the amount of earnings in excess of $10,500.

a.  Then over what range of earnings is the credit at its maximum value?

b.  At what income is the credit reduced to zero?

c.  Let the statutory income tax be a flat rate of 30 percent, with a basic personal exemption of $10,000. Ignore all other taxes and program benefits in the economy. Calculate and explain the effective marginal tax rate (EMTR) faced by this individual on income ranging from zero to $20,000.

d.  Discuss the incentive effects associated with this EMTR schedule, regarding the decision to join the workforce and to enhance  hours worked, say, from part-time to full-time. 


Related Discussions:- at what income is the credit reduced to zero

Explain hoe perception affected theory symbolic interaction, Assignment Th...

Assignment This assignment will provide you with insight on how others perceive you. It will be particularly useful in situations in which you find differences in self-other resul

Quantity of pollution abatement, Normal 0 false false false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

.., Consider the Edgeworth box with the production of consumption goods B a...

Consider the Edgeworth box with the production of consumption goods B and health- investment goods I. (a) Briefly explain the derivation of the contract curve. (b) How does one der

Credit, various credit arrangements

various credit arrangements

Categories of mbis, Normal 0 false false false EN-IN ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Decision process - welfare economics, One shortcoming of neoclassical welfa...

One shortcoming of neoclassical welfare economics is that it does not take into account the institutional structure of collective decision making. To draw normative conclusions abo

Economic principles of mbis, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Challenges that the public sector is facing at present, Problem 1: "The...

Problem 1: "The public sector needs to be reformed so as to meet the challenges of the day." With special reference to Mauritius, discuss the challenges that the public sect

Write Your Message!

Captcha
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