Substituted for the current progressive income tax

Assignment Help Financial Management
Reference no: EM13976573

The personal income tax in the United States is very different from a comprehensive income tax. Discuss how income distribution and resource use would change if a flat-rate tax on comprehensive income were substituted for the current progressive income tax.

Reference no: EM13976573

Questions Cloud

How should a business use working capital analysis : How should a business use working capital analysis? Which is more important to the short-term lender: the stock of cash or the flow of cash? Is it possible in today's business to operate with no current liabilities?
Used quarterly compounding rather than annual compounding : Suppose you deposit $1000 into a savings account that pays 8 percent. If the bank compounds interest annually, how much will you have in your account in 4 years? What would your balance be in 4 years if the bank used quarterly compounding rather than..
Indifferent between the two alternatives : Consider the decision you might have to make if you won a state lottery worth $105 million. Which would you choose: a lump-sum payment of %54 million today or a payment of $3.5 million each year for the next 30 years? At what opportunity cost would y..
Attending college and has a part-time job : Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a nest egg to start her off. Michelle works out her budget ..
Substituted for the current progressive income tax : The personal income tax in the United States is very different from a comprehensive income tax. Discuss how income distribution and resource use would change if a flat-rate tax on comprehensive income were substituted for the current progressive inco..
Does the source of taxable revenues make any difference : Given the following information on State A and State B: State A has no state income tax but a high state sales tax. State B has a medium state income tax and a medium state sales tax. Both States receive the same tax revenue per capita. Does one stat..
How much will your last deposit be : You need to accumulate $10000. To do so you plan to make deposits of $1750 per year, with the first payment being made one year from today, in a bank account that pays 6% interest. Your last deposit will be more than $1750 to reach your $10,000 goal...
Debt contract in terms of how finance defines debt : Which of the following contracts is NOT an example of a debt contract in terms of how finance defines debt?
Business plan and management team of new start-up venture : The terms below all refer to interest rate, in one context or another. Which is the correct term for the following situation: an investor studies the financial statements, business plan and management team of a new start-up venture, as well as studyi..

Reviews

Write a Review

Financial Management Questions & Answers

  Form of yield on bond

Which of the following is not a form of yield on a bond?

  Treasury bond-default risk premium and liquidity premium

A 5-year Treasury bond has a 4.05% yield. A 10-year Treasury bond yields 6.15%, and a 10-year corporate bond yields 9.35%. The market expects that inflation will average 2.1% over the next 10 years (IP10 = 2.1%). A 5-year corporate bond has the same ..

  Calculate a permanency award

Calculate a permanency award: Assume you work for the law firm of Smart & Better. This firm primarily represents injured workers who have been involved in work related accidents. You previously filed Issues of permanency for Howard Smith. Mr. Smith w..

  Statements concerning qualified target-benefit pension plans

All of the following statements comparing a profit-sharing plan to a pension plan are correct, EXCEPT: Which of the following statements concerning the basic provisions that are unique to ESOPs is (are) correct? All the following statements concernin..

  Importance of the time value of money concepts

Define and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts?

  Payment restriction and finance the amount required for car

You are considering the purchase of new car. You have negotiated with the salesperson at the dealership and you can purchase the vehicle for $30,000. You have $8,000 that you can use as a down payment. Can you meet your payment restriction and financ..

  State what effect would rising rates on corporate earnings

Given this economic background...Compose a 2-4 page report, single-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following:

  Person requires greater return when risk increases

If a person requires greater return when risk increases, that person is said to be:

  Use black-scholes option pricing model to value put option

You observe the following in relation to a 4-month European put option on the S&P200 index. Use Black-Scholes option pricing model to value the put option. State any assumptions you make. Take into consideration different compouding. Please do manual..

  The project requires and initial outlay

The project requires and initial outlay of $1,000,000. It is expected to generate net cash in-flows of $250,000 for the next five years. At the end of five years, Timmy will retire and the equipment will be sold for $500,000 (terminal value). The zoo..

  Break-even level of earnings before interest and taxes

Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 40,000 shares of stock. The debt and equity option would consist of 25,000 shares of stock plus $250,000 of debt wi..

  Paid dividend-what is the price of the stock

Thirsty Cactus Corp. just paid a dividend of $2.40 per share. The dividends are expected to grow at 16 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 15 percent, what is the p..

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