Tax proposals-same tax rate on income and capital gains

Assignment Help Business Economics
Reference no: EM131107702

Review the candidates’ tax proposals:

Ordinary Income

Clinton: Adds a 4% surtax on income over $5 million

Sanders: Establishes four new brackets of 37%, 43%, 48%, and 52%. The top rate applies to taxable income over $10 million. Raises the rate of all other brackets by 2.2%.

Cruz: Establishes a flat rate of 10% on all ordinary income. Increases the standard deduction to $10,000 per filer.

Trump: Establishes four tax brackets, with rates of 0%, 10%, 20% and 25%. The top rate applies to income over $150,000 for single filers and $300,000 for joint filers.

Capital Gains and Dividends

Clinton: Adds a 4% surtax on income over $5 million. Raises rates on medium-term capital gains (investments held for less than six years) to between 24% and 39.6%.

Sanders: Taxes capital gains and dividends at ordinary income rates for households with incomes over $250,000.

Cruz: Lowers the rate on capital gains and dividends income to 10%.

Trump: Eliminates the net investment income surtax (applies to high incomes)

1. Which tax plan(s) is/are proportional taxes?

2. Which plans are the most progressive?

4. Which plans have the same tax rate on income and capital gains?

5. Discuss what principles underlie each plan?

Reference no: EM131107702

Questions Cloud

Protectionist measures are enacted because they : Protectionist measures are enacted because they:
Identify contract provisions : Draft the Scope of Services. Finally, draft a "scope of services" for the contract. Assume that if there is no scope of services, the "White Stripes" will show up to Britt but won't do anything because the contract doesn't spell out exactly what..
Solutions to minimize the negative impacts : Discuss the anticipated impacts (both positive and negative) upon operating efficiencies, and recommend solutions to minimize the negative impacts. Discuss whether or not operating practices should be changed to accommodate the tune-ups.
What is usually used to pull historical and intraday data : Yahoo Finance is what's usually used to pull historical and intraday data for (Stocks). MyFXBook.com is what's usually used to pull historical and intraday data for (Currencies)
Tax proposals-same tax rate on income and capital gains : Review the candidates’ tax proposals: Which tax plan(s) is/are proportional taxes? Which plans are the most progressive? Which plans have the same tax rate on income and capital gains? Discuss what principles underlie each plan?
Analyse policy and procedures framework for recruitment : You are required to critically analyse an existing policy and procedures framework for recruitment, selection and induction in your chosen organisation or STAR Industries
An exponential distribution : The waiting time for an incoming call at the front desk of mathematics Department follows an exponential distribution. During business hours, the average of the waiting times is 10 minutes.
High fiscal deficit is affecting government ability to speed : A recent report on GDP growth rates showed that the GDP of Dorada, a developed economy, has declined this year. Emily George and her friend Tabitha, Jude, both students of economics, are discussing the possible reasons for the decline in the growth r..
What issues exist with regard to drug law enforcement : Compare and contrast the organizational structure of the mafia with that of a motorcycle gang. Do you think that drugs are their main source of income? How do they distribute their goods?

Reviews

Write a Review

Business Economics Questions & Answers

  Assume the elasticity of supply of cigarettes

The elasticity of demand for cigarettes is estimated to be about - 0.5. Assume the elasticity of supply of cigarettes is 1. If the government places a tax of $0.60 on cigarettes, how much will the price of cigarette increase (approximately)?

  What type of financial resources and personal skills

Have you thought about starting your own business? What opportunities seem attractive? What type of financial resources and personal skills would you need to launch a new business? How would you obtain these financial skills and personal resources?

  What type of preferences is carl exhibiting

Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always wiling to exchange three black shirts for one red shirt. What type of preferences is Carl exhibiting? Draw several indifference curves to illustrate C..

  Forecasts production and sales during the time periods

A firm starts production of a new product, and forecasts production and sales during the time periods (t1,t2,t3)=(1,2,3). The demand during time period t is estimated to be equal to t(4-t)/p^2 where p is a price of a product the firm will have to cho..

  Confidence interval for the population mean

A sample of 49 observations is taken from a normal population with a standard deviation of 10. The sample mean is 55. Determine the 99% confidence interval for the population mean. (Round your answers to 2 decimal places.)

  Calculate the breakeven output quantities

Using a wholesale cost of $4 per case in each state, calculate the breakeven output quantities for each alternative.

  Distinguish between customs union and common market

A quarter century ago Canada, Mexico and the United States formed a customs union, known as NAFTA. This is not a common market, and indeed there are an estimated 7 to 10 million illegal immigrants living in the United States, many of whom are Mexican..

  Currently producing at the minimum average variable cost

In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the ..

  Ideas of trade-offs-specialization and comparative advantage

Here are some hypothetical numbers used to illustrate the ideas of trade-offs, specialization, and comparative advantage. Assume Sri Lanka, using all her resources efficiently, can produce either 1,000 bags of rice OR 3,000 bags of tea. Let's also as..

  Whether to stay in business or shut down.

Mrs. Smith is earning a loss and should shut down in the short run. Mrs. Smith is earning a loss but should continue to operate in the short run. Mrs. Smith is earning a profit since the price is above the average variable cost.

  A tax system is called progressive

A tax system is called progressive if

  Normally distributed with standard deviation

An estimated 1.8 million students take on student loans to pay ever-rising tuition and room and board (The New York Times, April 17, 2009). It is also known that the average cumulative debt of recent college graduates is about $20,100. Let the cumula..

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