The income tax rate on all forms of income is 40 percent and there is a tax
Question:
The income tax rate on all forms of income is 40 percent and there is a tax of 10 percent on all consumption expenditure. The nominal interest rate is 7 percent a year and the inflation rate is 5 percent a year. What is the size of the tax wedge on wages and what is the true tax rate on interest?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The tax wedge on wages is the sum of the income tax rate and the tax rate on consumption So the tax ...View the full answer
Answered By
Lisper Wanja
I am an experienced and highly motivated writer with a passion for the skills listed. I have a proven track record of my expertise and my aim is to deliver quality, well-detailed and plagiarism free projects. My genuine passion for writing combined with my ongoing professional development through school and research makes me an ideal candidate within for any assignment.
233+ Reviews
388+ Question Solved
Related Book For 
Question Posted:
