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
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 a 6-8 page, DOUBLE SPACED review essay on one of the following titles.  Although several editions exist for some of these titles, I encourage you to select a well edited an

Explain the nature &importance of micro economic?

three basic economics difference between them and definations

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

Ask quedoes privatisation decentralise economic power stion #Minimum 100 words accepted#

Problem: (a) What do you meant by public policy? What does the study of public policy involve? (b) How are problems that might lead to public policy identified and defined?

which fallacies best diiscribe this statement The restaurant in new is either buddy''s bistro or Clyde emporium

Write a short note on product mix efficiency?

Q. Who will participate and how decision will be made are issues concerned with Public Choice. Whether participants are guided by social concerns or they harbour their private