Assignment6
Answer the following questions in detailed and clear terms:
- Consider the table below. We can use these data to find out what percentage of federal taxes is paid from the “top down” by the top 40%, top 60%, or top 80% of income earners. Likewise, we can count from the “bottom up” by the bottom 40%, 60%, or 80% of income earners. Fill in the table and show workings for full credit
Share of Total Federal Tax Revenue |
Share of Total Federal Tax Revenue |
||
Everyone |
100% |
Everyone |
100% |
Bottom 20% |
0.8% |
Top 80% |
|
Bottom 40% |
4.9% |
Top 60% |
|
Bottom 60% |
Top 40% |
85.6% |
|
Bottom 80% |
Top 20% |
68.7% |
- Given these data, which of the following are true? EXPLAIN
- The bottom 60% of taxpayers pay less than 25% of federal taxes.
- The top 80% of taxpayers pay over 98% of federal taxes.
- The top 40% of taxpayers pay less than 60% of federal taxes.
- In 2013, corporate income taxes were about 9.9% of total federal revenue. Use the graph below to help estimate what fraction of GDP represents corporate income taxes.
7.There are a lot of ways to slice up the U.S. budget. With this in mind, which of the following statements are true, based on the illustration below:
- Most of the federal budget is spent on welfare and foreign aid.
- The budget for the next year increased by 20%, what would be the allocation for Medicaid if the increase of 20 percent was applied uniformly and equally among all the sections stated.
- About half of the federal budget goes toward Medicare, Medicaid, and Social Security combined.
- More than half of the federal budget goes toward Medicare, Medicaid, Social Security, and interest on the debt combined.
- The federal government spends about $1,830 on the military per person in the United States.
- If 35% of unemployment insurance and welfare was spent on Welfare alone. What percentage of the US budget was spent on Welfare?
- Modern Principles of Economics, 3rd Edition (New York: Worth Publishers, 2016), Tyler Cowen and Alex Tabarrock
- Please show all work.