Question.2269 - Please upload your policy memorandum here as a pdf file. Be sure to follow all instructions in the assignment, as detailed under the the "module" policy memo on canvas. Please wa it until after we complete all tax lectures to submit this assignment,but you should be able to have a complete write up after we finish the personalincome tax and retail sales tax lecture. Iwould encourage you to wait to submit it though in case you get any additional inspiration from the externality or corporate tax lectures.
Answer Below:
Summary xxx elimination xx the xxxxx income xxx regime xxx expanding xxx retail xxxxx tax xxxx extending xx to xxxxxxx services xxxxx tilt xxxxx taxes xxxxxxx middle xxx lower-income xxxxxx It xxxxx also xxxxxxxx the xxxxx rsquo x ability xx maintain xxx public xxxxxxxx The xxxxxxxx system xxxxx be xxxxxxxxxxxxx as x regressive xxx system x contrast xxxx the xxxxxxx progressive xxxxxxxx system xxx elimination xxx replacement xxxxx affect xxxxxxx players xx the xxxxxxx and xxxxx have xxxxxxxx effects xxxxxxxxxx The xxxxxx regimes xxxxxxxx by xxxxxx authorities xxx around xxx world xxx different xxx United xxxxxx federal xxxxxxxx system xx generally xxxxxxxxxxxxx as x progressive xxxxxxxx system xx that x tax xx imposed xxxxx on xxx income xxxxxxxxx by xxxx individuals xxx companies xxxxxxx tax xxxxx are xxxxxxxxxx for xxxxxxxxxxx having xxxxxx levels xx income xxx current xxxxxxxx system xxxxxxx a xxxxxxx of xxxxx for xxx United xxxxxx the xxxxx contributions xx taxes xxx levied xxxxx on xxxxx and xxxxxx The xxxxx source xx revenue xx the xxxxxx States xx by xxx individual xxxxxx tax xxxxxx corporate xxx payroll xxx and xxxxx revenue xxxxxxx such xx excise xxxxx custom xxxxxx and xxxxxxx gains xxxx Economists xxxxx that xxxx system xx taxation xx income xx regressive xx it xxxxxxxxxxx savings xxx investment xxx current xxxxxx of xxxxxx taxes xxxx also xxxxxx increasingly xxxxxxx A xxxxxxxx regime xxxxx on xxx consumption xx seen xx methods xx increase xxxxxxxx saving xxx increase xxx propensity xx investment xx the xxxx run xxxxx are xxxxx major xxxxxxx economists xxxxxxxx for x shift xx the xxxxxxx taxing xxxxxxx simplicity xxxxxxxxxx and xxxxxxxx On xxx flip xxxx of xxx argument xxxxxxxxxxx the xxxxxxxxxxx of xxxxxx tax xxxx a xxxxxx sales xxx would xxx considerable xxxxxxxx on xxxxxx and xxx income xxxxxxxx requiring xxxx to xxxxx more xx their xxxxxx for xxxxxxxxxxx purposes xxxx Lunceford xxxxxxxx analysis xx the xxxxxxx Fiscal xxxxxx experts xxxxxxxxx consider xxxx major xxxxx for xxx reforms xx taxing xxxxxx These xxxxx are xxxxxxxxx fairness xxxxxxxx simplicity xxx economic xxxxxxxxxx As xx understood xx economic xxxxxxxx of xxxxxx regimes xxxxxx policy xxxxxx need xx make xxxxxxxxxx between xxxxx five xxxxx goals xx taxing xxx implementation xx a xxxxxxxxxxx tax xxxxxx to xxxxxxx the xxxxxx tax xxxxxx have xxxx ways xx being xxxxxxxxxxx The xxxxxxxx state xxxxxxxxxxx proposes xxx the xxxxxxxxxxxxx of xxx National xxxxxx sales xxx Application xx a xxxxxxx sales-tax xxxx for xxx retail xxxxx of xxxxx and xxxxxxxx to xxxxxxxxx is xxxxxxxx by xxx legislation xxx elimination xx the xxxxxx tax xxxxxx would xxxx the xxxxxxx government xx levy x substantial xxx on xxx purchase xx all xxxxxxxx goods xxx services xxxxx include xxxxxxxxx services xxxx estate xxxxxxxxx and xxxxxxxx The xxxxxx study xxxxxxxx that x percent xxx rate xx replace xxx individual xxx corporate xxxxxx tax xxxxxxx but xxxx critics xxxxxxx that xxx rates xxxx increase xxxx than xx fund xxxxxxxxx federal xxxxxxx that xxxxx be xxxxxxxxx with xxx elimination xx the xxxxxx tax xxxxxx The xxxxxx would xxxx large xxxx effects xxxxx effects xxx uncertain xxxx of xxxxxxxxx nbsp xxxxxxx L xxxxxxx Source xx Tax xxxxxxxxxx The xxxxxx federal xxxxxxx on xxx taxing xxxxxx of xxx United xxxxxx shows xxx primary xxxxxx of xxxxxxx in xxx from xxxxxxxxxx income xxxxx Federal xxxxx and xxxxx The xxxxxxxxxx of xxxxxxx for xxx federal xxxxxxxxxx is xxxxxxxxxx to xxxx the xxxxxxx objectives xx the xxxxx A xxxxxxxxxxx of xxx contribution xx the xxxxxx tax xxxx a xxxxx tax xxxxxx would xxx higher xxxxxx on xxx consumers xxxxxxxxxx the xxxxxxxxx from xxxxxx and xxxxx classes xxxxx consumers xxxxx more xx their xxxxxx for xxxxxxxxxxx purpose xxx legislation xx proposing xx increase xxx sales xxx would xxxx the xxxxxxxxxxx more xxxxxxxxx It xxxxx benefit xxx richer xxxxxxxxxx as xxxx would xxx be xxxxxxxx from xxxxxxxx out xxxxx incomes xxx utilize xxxxx income xxx only xxxxxxxxxxx and xxxxxxxxxx purposes xxxx would xxxxxx a xxxxxx divide xxxxxxx the xxxxx and xxx have xxx rsquo x The xxxxxxxx analysis xx changing xxxx the xxxxxxx tax xxxxxx to xxx sales xxx regime xxx be xxxxxxxx both xx the xxxx run xxx in xxx short xxx nbsp xxxx Hansena xxxxxxxx suggests xxxx the xxxxxx would xxxxx the xxxx GDP xx the xxxx run xxx this xxxxxxxxxx is xxxxx only xx the xxxxxxx operates xx full xxxxxxxxxx The xxxxxxxxxx of xxxxx simulations xx implement x tax xxxxxx would xxxxxx erode xxx long-term xxxxx in xxxxxxxx efficiency xxx switch xx a xxxxx tax xxxxxx would xx that xxx savings xxxx relative xx the xxxxxx rises xxxx rise xx income xx the xxxxxx perspective xxxxxxx when xxxxxx are xxxx to xxxx consumption xxxxxxxxx for xxx lifetime xxxxxx then xxxxxxxxxxx to xxx income xxxxx would xx very xxx for xxxx income xxxxxxxxxxx and xxxx high xxx low xxxxxx individuals xxx shift xxxxx result xx high-income xxxxxxxxx receiving x higher xxx cut xxx transitional xxxxxx of xxx tax xxxxxx would xx too xxxx of x burden xxx the xxxxxxx that xx already xx the xxxxx of x recession xxx table xxxxx analyses xxx simulation xx the xxxxxxxxxx of xxx tax xxxxxx nbsp xxxxxxx The xxxxx shows xxx percentage xxxxxxxxxx of xxxxxxxxx in xxx long-run xxxx the xxxxxxx baseline xxxx reflected xx the xxxxxxx federal xxx system xxxxx systems xxxxxxx the xxxxxxxxxxx of xxx federal xxxxxx tax xxxxxx A xxxx tax xxxx the xxxxxxxx deduction xxx wage xxxxxx and xxxxxxxxx the xxxxxxxx income xx owner-occupied xxxxxx nbsp x Modifications xx the xxxxxx proposal xxx elimination xx the xxxxxx tax xxx transition xx the xxxxx tax xx theory xx easier xxx more xxxxxxxxxx of xxx gains xx savings xxx investment xx large xxxx is xxxxxxx weakened xxxx we xxxxxxxx the xxxxxxxxxxxx in xxxxxxxxxx to xxx current xxxxxx tax xxxxxx to xxx proposed xxxxxxxxxxx tax xxxxxx The xxxxxxxx of xxxx moment xx also xxxxxx into xxxxxxxx The xxxxxxxxxx would xxxx benefits xx the xxxxxxx in xxx long xxx the xxxxxxxxxxxx difficulties xxxx always xxxx obstacles xxx change xxx be xxxxxxxx by xxxxx of x gradual xxxxxx a xxxxxxxx of xxx increase xx reliance xx the xxxxxxxxxxx tax xxxx on xxx income xxx It xxx be xxxx in xxxxxx to xxxxxx that xxx transition xxxx not xxxxx the xxxxxxx and xxx intended xxxxxxx would xxx be xxxxxxxx The xxxxxx replacement xx the xxx regime xxxx contributes xx major xxxxxxx for xxx federal xxxxxxxxxx would xxxx the xxxxxxxx effect xx the xxxxxxx A xxxxxxxx tax xxxxxx can xx introduced xxxx can xx operated xxxx by xxxx with xxx income xxx regime xxx lifting xxx the xxxxxx of xxx income xxx on xxxxxx and xxxx the xxxxxxxx of xxx federal xxxxxxxxxx on xxx income xxx regime xxxx Metcalf xxxxxxxx analysis xx the xxxxxxxxxxxxxxxxxx slow xxx phased xxxxxx of xxxxxxxxxxxxxx of xxx transition xxxxx not xxxxx the xxxxxxx The xxxxxx of xxxxxxxxx commodities xxxxx gradually xxxx giving xxxxx and xxxxxx income xxxxxx the xxxxxxx to xxxxxxxx their xxxxxxx during xxx transition xxxxxx to xxxx offset xxx rise xx consumption xxxxxxxxxxx When xxx economic xxxxxxxx on xxxxxxx players xx the xxxxxx is xxxxx with xx phases xx can xxxx a xxxx positive xxxxxx on xxx economy xx the xxxx run xxxxx the xxxxxxxxxxxxx of xxx proposed xxxxxx on xxx lower xxx middle xxxxxx groups xxxxx still xx present xxx phased xxxxxxxxxxxxxx of xx would xxxx in xxxxxxxxxx the xxxxxx shock xxx rising xxxxxx can xx dealt xxxx more xxxxxxxxxxx when xxxxx is xx anticipation xx the xxxx Introducing xxxx complexity xx the xxxxxxxxxx phase xxxx as xxx taxing xx only xxx corporate xxxxxx would xxxx to x counterproductive xxxxxx It xxxxx make xxx taxing xxxxxx more xxxxxxx the xxxxxxxxx that xxx current xxxxxxxxxxxxxx seeks xx eradicate xxxx Marples xxxxxxxxxx The xxxxxxxxxx of xxxxxxx is xxxxxxxxxx to xxxx the xxxxxxx objectives xx the xxxxx Replacement xx the xxxxxxxxxxxx of xxx income xxx with x sales xxx regime xxxxx put xxxxxx burden xx the xxxxxxxxx especially xxx consumers xxxx middle xxx lower xxxxxxx The xxxxxxxxxxx in xxxxxxxxx to xxxxxxxx the xxxxx tax xxxxx make xxx consumption xxxx expensive xxxx Garner xxx complete xxxxxxxxxxx of xxx income xxx regime xxx a xxxxxxxxxxx of xxx same xx means xx the xxxxx tax xxx certain xxxxxxxx has xxxx advantages xx the xxxx of xx however xxx process xx implementation xx these xxxxxxxxxxxxxx must xx slow xxx phased xx ensure xxxx the xxxxxxx is xxx counterproductive xxx Kentucky xxxxx legislation xx eliminating xxxxx Income xxx and xxxxxxxxxx revenue xx expanding xxxxxx sales xxx base xxxxxxxxx some xxxxxxxx would xx beneficial xx the xxxxxxx only xx the xxxxxxx of xxx transition xx carried xxx effectively xxxx BibliographyCharles x Ballard x F xxxxxxxxx the xxxxxxxx Income xxx with x Progressive xxxxxxxxxxx Tax xxxxxxx URL xxxx www xxxx org xxxxxxxx c xxxx University xx Chicago xxxxxx R xxxxxxxxxxx Taxes xx Income xxxxx implications xxx economic xxxxxx National xxx Association xxxxxx C x Consumption xxxxx Macroeconomic xxxxxxx and xxxxxx Issues xxxxxxx RESERVE xxxx OF xxxxxx CITY xxxx Gary xxxxxxx S xxxxxxxxx income xxxxxxxx with xxxxxxxxxxx taxation xx Japan xxxxxxx of xxx Japanese xxx International xxxxxxxxx nbsp xxxxxxxxx L x The xxxxxxxxxxxxx Implications xx Replacing xxx U x Federal xxx System xxxx a xxxxxxxxxxx Tax xxxxxx Program xxx Undergraduate xxxxxxxx SPUR xxxxxxxxx at xxxxx repository xxxxx edu xxxx nbsp xxxxxxx D x Consumption xxxxx An xxxxxxxx Congressional xxxxxxxx Service xxxxx crsreports xxxxxxxx gov xxxx Metcalf x E xxxxxxxxxxx taxation xxxxx University xxxx Shaviro x N xxxxxxxxx the xxxxxx Tax xxxx a xxxxxxxxxxx Consumption xxx New xxxx University xxxxxx of xxx nbsp xxxx nbsp xxxxMore Articles From Economics
.ico)
.ico)
.ico)
.ico)
