How the total effective tax burden change

Assignment Help Financial Management
Reference no: EM131200168

Consider the changes over time in the U.S. effective tax rates presented in Table.

How did the total effective tax burden change for the lowest and highest deciles of the population between 1979 and 2006?

How did the composition of this burden across different types of taxes change over this period?

 

1979

1985

1990

1995

2000

2006

2011

 

Total effective tax rate

All households

22.2%

20.9%

21.5%

22.6%

23.0%

20.7%

18.6%

Bottom quintile

8.0%

9.8%

8.9%

6.3%

6.4%

4.3%

1.1%

Top quintile

27.5%

24.0%

25.1%

27.8%

28.0%

25.8%

23.8%

 

Effective income tax rate

All households

11.0%

10.2%

10.1%

10.2%

11.8%

9.1%

10.1%

Bottom quintile

0.0%

0.5%

-1.0%

-4.4%

-4.6%

-6.6%

-6.0%

Top quintile

15.7%

14.0%

14.4%

15.5%

17.5%

14.1%

15.3%

 

Effective Payroll tax rate

All households

6.9%

7.9%

8.4%

8.5%

7.9%

7.5%

5.3%

Bottom quintile

5.3%

6.6%

7.3%

7.6%

8.2%

8.5%

4.8%

Top quintile

5.4%

6.5%

6.9%

7.2%

6.3%

5.8%

4.1%

 

Effective Corporate tax rats

All households

3.4%

1.8%

2.2%

2.8%

2.4%

3.4%

2.5%

Bottom quintile

1.1%

0.6%

0.6%

0.7%

0.5%

0.5%

0.4%

Top quintile

5.7%

2.8%

3.3%

4.4%

3.7%

5.4%

4.0%

 

Effective Exercise tax rate

All households

1.0%

0.9%

0.9%

1.0%

0.9%

0.7%

0.7%

Bottom quintile

1.6%

2.2%

2.0%

2.4%

2.3%

1.9%

1.9%

Top quintile

0.7%

0.7%

0.6%

0.7%

0.5%

0.4%

0.4%

Reference no: EM131200168

Questions Cloud

Describe an empirical test of the effects : Describe an empirical test of the effects of this policy change on the savings of high-income households in Maupintania.
Briefly describe the two advertisements you selected : Select no more than three (3) channels by which you would communicate the message of the ad (the ad itself) to the targeted group and detail how each channel selected would serve the ad well.
Describe evolution of problem and emergence of ug business : Present a brief background and some history - Describe the evolution of the problem and the emergence of the UG business. Discuss the mechanics of operation of this UG activity, as well as the ways in which payments are made.
One -way analysis of variance anova : Practice Exercise 13: One -way Analysis of Variance (ANOVA), When is it appropriate to use a one-way ANOVA to analyze data? What letter is use the designate the test statistic used in the one-way ANOVA?
How the total effective tax burden change : How did the total effective tax burden change for the lowest and highest deciles of the population between 1979 and 2006?
Fifo page removal algorithm : Using the FIFO page removal algorithm, indicate the movement of the pages into and out of the available page frames (called a page trace analysis) indicating each page fault with an asterisk (*). Then compute the failure and success ratios.
Draw the linear graphs for the two systems : Draw the linear graphs for the two systems and mark the mobility functions for all the branches (except the source elements).
What are the geographic locations : What is the required skill set to qualify for the position you want to apply in each company? Do you have the necessary experience? If not, what is your plan to get it?
Employers protect their data on employees devices : How Should Employers Protect Their Data on Employees’ Devices? Companies are finding it increasingly difficult to manage their intellectual property now that employees have Smartphone and tablets many times which are not owned by the company. When a ..

Reviews

Write a Review

Financial Management Questions & Answers

  Pros and cons of the two alternatives

An investment bank has been asked to underwrite an issue of 10 million shares by a company. It is trying to decide between a firm commitment where it buys the shares for $10 per share and best efforts where it charges a fee of 20 cents for each share..

  Forecast payoff is an annual-uniform-finite annuity

Project A costs $91,000 today and the forecast payoff is an annual, uniform, finite annuity of $10,000 starting a year from today that ends in 15 years. Please calculate this project's IRR. Is it acceptable if the hurdle rate is 8%? Can this be solve..

  Interest compounded annually

Beatrice invests $1,460 in an account that pays 5 percent simple interest. How much more could she have earned over a 6-year period if the interest had compounded annually?

  Total portfolio is equally as risky as the market

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.13 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio?

  Forward rate for one us dollar in terms of canadian dollars

If the spot rate for Candian dollars is 1.25 = 1 USD and the annual interest rate on fixed rate one year depostis of Canadian dollars is 2.5% and for US$ is 1.5%, what is the 9 month forward rate for one US dollar in terms of Canadian dollars? Is thi..

  Their share are in proportion to their investments

John starts a business with $168000 as capital.Six months later, Andrew joins john with a capital of $144000. One month after that, Edward joins them with a capital of $324000. At the end of first year, the profit is $40000. How much do john, Andrew ..

  About the premium for financial risk

Essy Enterprise has an unlevered beta of 1.3. Essy is financed with 45% debt and has a levered beta of 1.8. If the risk free rate is 6% and the market risk premium is 7%, how much is the additional premium that Essy's shareholders require to be compe..

  Capitalization increase or decrease shareholder wealth

Barns Brother's capital structure is 100% equity and 0% debt. Currently there are 100,000 shares of common stock outstanding. Barns has decided to change its capital structure by buying back shares of common stock in a recapitalization effort. How mu..

  Begin by constructing a time line

A project has an initial cost of $56,800, expected net cash inflows of $15,000 per year for 9 years, and a cost of capital of 13%. What is the project's NPV?

  Prepared to make equal annual deposits into the account

You want to have $85,000 in your savings account 13 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.30 percent interest, what amount must you deposit each year?

  A stock is expected to pay an annual dividend

A stock is expected to pay an annual dividend of $4 each year into indefinite future. Rates of return on equally risky assets are 5%. Stock price=$100. Is there a bubble on this stock? How do you know? How big is bubble? To be consistent with no arbi..

  For firm with constant payout ratio

For a firm with a constant payout ratio, the dividend growth rate can be estimated as: Return on equity × (1 + Retention ratio). Return on retained earnings × Retention ratio. Return on assets × Retention ratio. Payout ratio × Return on equity. Payou..

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