Question:

Economic tax rates question?

by Guest60047  |  earlier

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I'm doing one of the homework for economic but was clueless on the following question......please tell me which one of the would be correct and the reason...thanks

Senator Foghorn promised during his campaign for re-election that he would support family values and end the marriage tax. He also promised to make the rich pay their fair share in taxes, so he would make the income tax more progressive. In addition, he promised that all couples with the same income would pay the same tax and that people with no income would not be taxed. Can Senator Foghorn keep all of his promises?

a. Yes, as long as he makes sure that the average tax rate remains lower than the marginal tax rate.

b. Yes, as long as he makes sure that the marginal tax rate remains lower than the average tax rate.

c. Yes, as long as the highest marginal tax rate on married couples is no higher than the highest marginal tax rate on individuals.

d. No, the promises cannot all be met at the same time.

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1 ANSWERS


  1. I guess no one else wanted to waste their time pointing out that this makes no sense. There is no "marriage tax". There is no way to define a "fair share".  The "couples" item is too vague and simplistic. People with no income do not pay tax.

    Finally, the Senator can not legitimately "promise" to deliver on any of this, although they all do promise these things. He can only try to get the agreement of a few hundred other politicians, in order to accomplish whatever.

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