Micro 3/6


Excise Tax

  • a per unit tax
  • cigarette/gasoline tax
  • tariff is a type of excise tax

Income Tax

  • U.S. has a progressive income tax (brackets)

Sales Tax

  • consumption tax
  • goods and services

Fair tax

  • no income tax on the federal level
  • 23% sales tax; P increase 17%
  • Pros: more $$$, catches black market
  • Cons: not progressive (response was prebate: covers the taxes on necessity goods which fixes it and makes it progressive again); old people (decreases their savings in sales tax)

Property taxes

  • public schools
  • some wanted to go to vouchers (get a coupon to choose school)(school choice)
  • pros of a voucher: choose; education level goes up; competition
  • cons of a voucher: the transition (poor people will be screwed)

Death tax (inheritance tax)

  • affects upper middle class
  • gift tax

Social Security Tax

  • you pay a % into your social security account—->when you retire, you get paid back
  • Forced retirement account
  • Chris works, pays a %, goes to retired people


Leave a comment

Filed under Microeconomics

Empty here... Leave your remarks!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s