Suppose that Congress, after cutting the corporation income tax rate last year, now seeks ways to increase total tax revenues One option it is considering is to eliminate tax free savings provision in Individual Retirement Accounts (IRAs), effectively eliminating them as a tax advantaged savings vehicle You may recall that an individual can contribute up to $5,500 annually to an IRA a If IRAs are eliminated, how will this affect the total savings of persons who currently save $5,000 per year in IRAs Explain the income and substitution effects that this policy generates (7points) b If IRAs are eliminated, how will this affect the total savings of persons who currently save more than $10,000 per year, in IRAs but in other forms as well Explain the income and substitution effects that this policy generates (7 points) c If the government eliminates the possibility of saving through IRAs, what will happen to national savings Explain (6 points)

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Suppose that Congress, after cutting the corporation income tax rate last year, now seeks ways to increase total tax revenues  One option it is considering is to eliminate tax free savings provision in Individual Retirement Accounts (IRAs), effectively eliminating them as a tax advantaged savings vehicle  You may recall that an individual can contribute up to $5,500 annually to an IRA  a  If IRAs are eliminated, how will this affect the total savings of persons who currently save $5,000 per year in IRAs  Explain the income and substitution effects that this policy generates  (7points) b  If IRAs are eliminated, how will this affect the total savings of persons who currently save more than $10,000 per year, in IRAs but in other forms as well  Explain the income and substitution effects that this policy generates  (7 points) c  If the government eliminates the possibility of saving through IRAs, what will happen to national savings  Explain  (6 points)

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. Suppose that Congress, after cutting the corporation income tax rate last year, now seeks ways to increase total tax revenues. One option it is

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