Government spending and taxation

Jul 15th, 2013
Political Science
Price: $5 USD

Question description

I was needing help with these questions.  They are from the book Macroeconomics: Private and Public Choice, 14e.  It is the Special Topic 1.

2) During the past five decades, there has been a shift in the composition of the federal budget toward more spending on income transfers and health care and a smaller share for national defense.  Does economics indicate that this change will help Americans achieve higher living standards? Discuss.

3) Because the structure of the personal income tax is progressive, a larger share of income
is taxed at higher rates as real income increases.  Therefore, economic growth automatically
results in higher taxes unless off-setting legislative action is taken.  Do you think this is an attractive feature of the current tax system?  Why or why not?

4) Compared with the situation before 1981, the marginal tax
rates imposed on individuals and families with high incomes are now lower.  What was the top marginal personal income tax rate in 1980?  What is the top rate now?  Are you in favor of or opposed to the lower marginal rates? Why?

7)  Can democracy survive if a majority of the citizenry pay little or nothing in taxes while
benefiting directly from a higher level of government spending?  Why or why not?  Discuss.  

Tutor Answer

(Top Tutor) Daniel C.
School: UIUC

Studypool has helped 1,244,100 students

Review from our student for this Answer

Jul 16th, 2013
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors