Reading: David H. Autor, “Skills, education, and the rise of earnings inequality among the ‘other 99 percent,’” Science, 23 May 2014, 843-851. Proposition #1: “More people are falling behind today because they’re lazy. In the U.S. anyone willing to work can earn a decent living. The income distribution is the same as the effort distribution. People who work hard earn a good living. Lazy people stay poor. The income distribution has been skewing because of a growing culture of dependency. It used to be shameful to accept handouts from the government, but now it’s perfectly acceptable. So, more people opt out of the labor force and sit around collecting handouts from the rest of us. Of course, their incomes are going to be lower than those in the top tiers.” Proposition #2: “The incomes of the rich and poor have been growing farther apart due to purposeful policy decisions that have favored the rich at the expense of the poor. Starting with Ronald Reagan’s financial deregulation, and continuing with successive Republican attacks on New Deal and Great Society social programs to finance tax cuts for their Wall Street cronies, government policy in this country has systematically channeled the rewards of our immensely productive economy towards the rich and away from the poor. America needs to open the gateway to prosperity for all through fair tax policies, decent minimum wages, better public schools, aid to low-income college students, and a universal health care system.” Assess the degree to which each of those propositions is consistent with David H. Autor’s wellresearched explanation of the same phenomenon. That is, for each of the propositions tell me whether or not Autor would agree that the underlying factor described in the proposition is the major cause of the pattern of income inequality since the 1970s. (2 paragraphs) 1) Begin with a topic sentence that concisely states your judgment about how consistent the two propositions are with Autor’s analysis, and complete that paragraph with a summary of Autor’s explanation. Be sure to mention some of the factors Autor identifies as having contributed to an increase in the demand for highly-educated workers and a decrease in the demand for lesseducated workers. 2) In your second paragraph, discuss the degree to which the two propositions are consistent with Autor’s analysis. Is one more consistent than the other?

Complete the following questions Set 1. W6 Questions – Questions 1-6 (Attached)W5 Questions – Questions 1-8 (Attached)Set 2Mindy, who is 44 years old, has five IRAs. On January 12th, she converts $40,000 in IRA 2, which is a traditional IRA, into a Roth IRA. On March 25th, she takes a distribution of $20,000 from IRA 1. On May 20th, she rolls over the $20,000 into IRA 4. Which of the following statements is correct?Mindy owes tax and penalty on $40,000Mindy owes tax and penalty on the $20,000 because it represents her second rollover during the year.The $20,000 rollover qualifies for the 60-day rollover exception.Mindy owes ordinary income tax on $60,000 but no penalty. Kay turned 70 ½ on March 17th of Year 2. Her profit-sharing account balance was $500,000 at the end of Year 1 and $550,000 at the end of Year 2. Her beneficiary is her favorite granddaughter, Jordan, who turned 12 years old on July 23rd of Year 2. Assume that the joint life expectancy factor for a 70-year-old and a 12-year-old is 71 and the joint life expectancy for a 71-year-old and a 13-year-old is 70. Also, assume that the life expectancy factor based on the uniform lifetime table for someone who is 70, 71, and 72, is 27.4, 26.5, and 25.6, respectively. Kay takes a distribution of $10,000 in November of Year 1 and in Year 2. What is Kay’s minimum distribution for Year 2?$18,248$18,868$20,073$20,755 Donna turned 72 on January 7th of Year 2. Her profit-sharing account balance was $100,000 at the end of Year 1 and $150,000 at the end of Year 2. Her beneficiary is her older sister, Robin, who turned 82 years old on July 2nd of Year 2. Assume that the life expectancy factor based on the uniform lifetime table for someone who is 70, 71, 72, and 73 is 27.4, 26.5, 25.6, and 24.7, respectively. If Donna only takes a distribution of $2,000 for Year 2, then how much is her minimum distribution penalty?Kathy has an account balance in her employer’s money purchase pension plan of $1,000. The plan has a 2-6 graded vesting policy. She has been a participant for three and a half years and has worked for the company for five years. Assuming the plan permits loans, what is the maximum loan that Kathy could take from the plan?$20,000$30,000$40,000$50,000BJ has a vested account balance in his employer-sponsored qualified money purchase pension plan of $60,000. He has two years of service with his employer and the plan follows the least generous graduated vesting schedule permitted under PPA 2006. If BJ has an outstanding loan balance within the prior 12 months of $15,000, what is the maximum loan BJ could take from this qualified plan, assuming the plan permitted loans?$15,000$30,000$35,000$50,000Thomas, who is 49 years old, received a distribution form his Roth account of his employer’s 401(k) plan in the amount of $100,000 on August 11th. He has been a participant in the plan for ten years. His adjusted basis in the plan was $600,000 and the fair market value of the account as of August 11 was $1 million. The distribution was for the purpose of buying a Porsche for himself for this birthday. What is the taxable amount of the distribution and any applicable penalty?$0 taxable, $0 penalty because it is a qualified distribution $40,000 taxable, $4,000 tax penalty$40,000 taxable, $0 tax penalty$100,000 taxable, $10,000 tax penaltyBaily owns and operates Ben’s Red Truck Shop (BRT), which is a sole proprietorship, She has self-employment income of $150,000. How much self-employment tax does she owe for 2019?$20,497$20,830$21,194$22,950Dan owns and operates Schoepf’s Sales Solutions (3S), a sole proprietorship. 3S sponsors a profit-sharing plan. Dan had net income of $250,000 and paid self-employment taxes of $22,000 (assumed) during the year. Assuming Dan is over the age of 50, what is the maximum amount that Dan can contribute to the profit sharing plan on his behalf for 2019?$47,800$53,800$56,000$62,000Colin owns and operates Colin’s Creative Coaching (3C), a sole proprietorship, 3C sponsors a 401(k)/profit-sharing plan. Colin had net income of $200,000 and paid self-employment taxes of $20,000 (assumed) during the year. Assuming Colin is over the age of 50, what is the maximum amount that Colin and his company can contribute on his behalf to the plan for 2019?$25,000$56,000$62,000$63,000Jordan owns and operates Jordan’s Exotic Jouneys (JEJ), a sole proprietorship. JEJ sponsors a profit-sharing plan. Jordan had a net income of $150,000 and paid self-employment taxes of $20,000 (assumed) during the year. Jordan has decided to make a 15% contribution for her employees for the year. Assuming Jordan is over the age of 50, what amount will she contribute for herself to the plan for 2019?$16,957$18,261$28,000$56,000 Chapter 8 Questions