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7. What tax policy standard relates to these behavioral responses when tax rates increase? 8. What tax policy standard relates to a tax that is

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7. What tax policy standard relates to these behavioral responses when tax rates increase? 8. What tax policy standard relates to a tax that is relatively casy to calculate and pay for the taxpayer and relatively easy to collect for the government? 9. Congress passes a law to provide special tax deductions to taxpayers for purchasing electric cars. Has Congress adopted a Classical or Keynesian view with respect to electric cars? 10. What tax policy standard relates to the Classical and Keynesian views? Khapit Lismrox Company is about to engage in a transaction with the following cash flows over a two-year period beginning in the current year: Year 0 Taxable Revenues 1,350 Nontaxable Revenues 300 Fully Deductible Expenses 650 Partially Deductible Expenses (50%) 300 Nondeductible Expenses 200 Applicable Tax Rate 35% 11. Is the decision making tax rate an average tax rate or a marginal tax rate? Why? 12. What is the after-tax profit of the Year O partially deductible expenses? 13. Would the after-tax profit of the Year 0 nontaxable revenues increase, decrease, or stay the same if the applicable tax rate were lower? MacBook Air 7. What tax policy standard relates to these behavioral responses when tax rates increase? 8. What tax policy standard relates to a tax that is relatively casy to calculate and pay for the taxpayer and relatively easy to collect for the government? 9. Congress passes a law to provide special tax deductions to taxpayers for purchasing electric cars. Has Congress adopted a Classical or Keynesian view with respect to electric cars? 10. What tax policy standard relates to the Classical and Keynesian views? Khapit Lismrox Company is about to engage in a transaction with the following cash flows over a two-year period beginning in the current year: Year 0 Taxable Revenues 1,350 Nontaxable Revenues 300 Fully Deductible Expenses 650 Partially Deductible Expenses (50%) 300 Nondeductible Expenses 200 Applicable Tax Rate 35% 11. Is the decision making tax rate an average tax rate or a marginal tax rate? Why? 12. What is the after-tax profit of the Year O partially deductible expenses? 13. Would the after-tax profit of the Year 0 nontaxable revenues increase, decrease, or stay the same if the applicable tax rate were lower? MacBook Air

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