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The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695 Exercise 17
The claim is often made-and also often ridiculed-that taxes on income reduce people's incentives to earn income.
(a) If you were required to pay the government 50 percent of all money income you earn during the summer, would you choose to work more or fewer hours than if your income were not subject to tax? Would you look for ways to raise your income without raising your money income or taxable income?
(b) How does a 50 percent marginal tax rate (additional taxes divided by additional income) affect the cost to a physician of building her own home rather than hiring a contractor?
(a) If you were required to pay the government 50 percent of all money income you earn during the summer, would you choose to work more or fewer hours than if your income were not subject to tax? Would you look for ways to raise your income without raising your money income or taxable income?
(b) How does a 50 percent marginal tax rate (additional taxes divided by additional income) affect the cost to a physician of building her own home rather than hiring a contractor?
Explanation
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Tax increase government income, it helps...
The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
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