Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 12

Go to Table 1 in the Last Word and compute the ratio of average wealth to median wealth for each of the 4 years. What trend do you find What is your explanation for the trend The Federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Do you favor repealing the estate tax Explain.