Index of the ability to pay taxes than income
Explain why many economists argue that an income tax penalizes savers but a consumption tax would not. In what sense can consumption be regarded as a better index of the ability to pay taxes than income?
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Their total round trip is 50 miles per day. How many of those if any, can Sue use to calculate an itemized deduction for transportation? Use the mileage rate in effect for 2013(mileage rate for 2013 is 24.0 cents per mile). Explain your answer.
Describe why many economists argue that an income tax penalizes savers however a consumption tax would not. In what sense can consumption be regarded as a better index of the capability to pay taxes than income?
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