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

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. 

Posted Date: 3/16/2013 1:07:43 AM | Location : United States

Related Discussions:- at what income is the credit reduced to zero, Assignment Help, Ask Question on at what income is the credit reduced to zero, Get Answer, Expert's Help, at what income is the credit reduced to zero Discussions

Write discussion on at what income is the credit reduced to zero
Your posts are moderated
Related Questions
critically examine that privatization can always decentralize economic power

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

three basic economics difference between them and definations

QUESTION: a) How do returns to scale and returns to factor affect the shapes of the AC in the Long-run and short-run respectively? b) "Standard of living has to be measure

Health Economics - derivation of the contract curve: 01. Consider the Edgeworth box with the production of consumption goods B and health- investment goods I. (a) Briefly expl

Question 1: Examine the essential elements of modern democratic societies. Question 2: State the various ways in which the participation of people is achieved in a demo

Discuss the basic features of international policy coordination. There may be two sources of interdependence between national economic policies, club goods and horizontal spill

Probelm 1: (a) What are the main roles of Government in the economic development of a country? (b) What are some of the emerging issues affecting the role of Government?

The major economies in the world are in a deep recession although there are some signs of growth. What implications has such a recession had for international business? How have go

Suppose that economic outcomes can be classified as either good or bad. Governments differ in ability and this affects the likelihood of good outcomes. There are two types of gover