If the government increases the income tax rate from 5% to 10%, will the workers work more or work less? Explain in detail and illustrate your answer with a diagram.
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If the government increases the income tax rate from 5% to 10%, will the workers work more or work less? Explain in detail and illustrate your answer with a diagram.
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- Why might one person work more, earn more, and pay more income tax when his or her tax rate is cut, while another person will work less, earn less, and pay less income tax under the same circumstance?A friend of yours explains that the unemployment rate for Stockton City, NJ has been declining for several months. They tell you that this is clearly a sign that Stockton City's labor market is improving quickly. You explain to your friend that this may not be a sign of an improving labor market if: a. Stockton's home ownership rate is decreasing. b. Stockton's labor force is increasing. c. Stockton's poverty rate is increasing. d. Stockton's labor force is also declining.The graph illustrates the labor market in a country that does not tax labour income Suppose that the government introduces a Social Security tax on workers of $2 an hour. How many workers are employed? What is the wage rate paid by employers and what is the workers' after-tax wage rate? How many workers are no longer employed? The number of workers employed is 14.00 13.00 12.00- 11.00 10.00- 9.00- 8.00- 7.00 Wage rate (dollars per hour) 10.00 600 700 900 900 1000 1100 500 Quantity (workers) LS LD 1200 ou
- What do you think would happen if there were no taxes and you could spend all your money on capital and employee wages?Please help me respond to the following question with graphs: Suppose there is a reduction in income taxes. For a given worker, how willafter-tax income be affected?Using examples to frame your discussion, critically evaluate the impact of income taxes on labour supply.
- Question 3/28 > NEXT BOOKMARK Workers pay tax for Social Security and Medicare every time they get paid. A an income Ba sales Ca property a payroll DELLIn California, a welfare recipient is eligible for welfare benefits of $645. Benefits are reduced by 50 cents for every dollar of earnings. Consider Elizabeth, a resident of California, who can earn $10 per hour. a. If she works 10 hours, how much are her earnings, how much is her welfare benefit, and how much is her income? b. After Elizabeth works a certain number of hours, she does not receive any benefit at all. What is that number of hours? c. Use your answer to parts a and b to plot her budget constraint. d. Sketch a set of indifference curves consistent with Elizabeth's participating in the labor marketIn country A, its population is 300 million, and 50 million people are living below the poverty line. What is the poverty rate? In country B, the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate?
- What impact does taxes have on the state of employment and the workforce? Are they beneficial or a hindrance to growth in employment? If taxes were lower, how could business differently? What do you think would happen if there were no taxes and one could spend all the money earned on capital and employee wages?Answer the questions based on the data in the table. Round all answers to two places after the decimal. Earner Annual income amount Income tax amount Sally $90247.00 $29781.51 Steve $160249.00 $46472.21 Jamie $230251.00 $57562.75 Pat $300253.00 $72060.72 What is Sally's tax rate? % What is Pat's tax rate? %what is the impact on the labour market due to a reduction in income tax rate?