Many a political figure advocates making higher income and more wealthy individuals "pay their fair share" in taxes. This is a four part question.

1. What economic meaning can we attached to the concept of "fair share?"

2. Suppose we legislate an increase in the top marginal individual income tax rate from 38% to 50%. What economic adjustments/reactions can we anticipate from the individuals who will be affected by this tax rate change?

3. Instead of increasing marginal tax rates, what do most economists propose as a better way to collect additional revenues from higher income individuals? Explain why.

4. Explain why employment-based taxes (e.g., those paid by employers and employees into the Social Security System) probably don't meet the "pay their fair share" standard.