Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Play the Tax Game available online at http://econ.glendale.edu/index.php It is a simulation in which you are the tax dictator for a mythical country. You

image text in transcribed
image text in transcribed
1. Play the Tax Game available online at http://econ.glendale.edu/index.php It is a simulation in which you are the tax dictator for a mythical country. You must collect enough revenue-but not too much-for your government by adjusting a number of different tax rates, caps and deductions. When you collected sufficient revenue, the game will tell you the tax incidence. That is the impact of your tax choices on different income groups ranging from the bottom 20% to the top 1%. And, the program will estimate your Gini coefficient. You will be asked to readjust you tax choices so that you are satisfied with your tax incidence. There is no correct answer to the game; each of you will differ in your political perspective and how you choose your tax rates. However, I will ask you to justify each of your tax choices as well as the overall tax incidence. Along with a print out of your final outcome and choices, answer the following. a. For each of the taxes, explain the choice you made for the tax rates. If relevant, also explain any choices you made for deductions or caps. In other words, why did you choose each number you entered in the simulation. In justifying your choices, please refer to the progressive or regressive impact of each of these taxes. b. Identify the tax choice that had the caused the Gini coefficient to rise the most Why did it have this effect? c. Identify the tax choice that had the caused the Gini coefficient to fall the most Why did it have this effect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

1. To gain knowledge about the way information is stored in memory.

Answered: 1 week ago