ECO 450 Week 10 Quiz
According to the Harberger model of the incidence of the corporate income tax, the tax:
Under the corporation income tax in the United States,
Accelerated depreciation allows corporations to:
If corporations maximize profits, the short-run incidence of a tax on its profits will be borne by:
The tax base for the corporate income tax in the United States is:
The double taxation of dividends under U.S. tax code means:
If an all-equity firm has after-tax income of $100,000 based on a 34% income tax, what is the after-tax income of an equivalent firm that pays $15,000 in interest that is tax deductible?
If interest on corporate debt is tax deductible, a firm’s return on equity increases because:
Assuming that the supply of savings is perfectly inelastic, the corporate income tax prevents the attainment of efficiency by:
If the supply of savings is not perfectly elastic, the corporate income tax is likely to:
In the long run a corporate income tax that initially reduces the return to investment in the corpo¬rate sector will also:
If corporations maximize profit, a corporate income tax:
Assuming that corporations maximize profits and investors seek to maximize the return to their investments, the long-run impact of a corporate income tax is to:
The effective tax rate is:
Which of the following is true about the economic effects of the corporate income tax?
In most states, the retail sales tax can be regarded as equivalent to a:
The differential incidence of substituting a tax on comprehensive consumption for a tax on compre¬hensive income is likely to be:
Suppose two individuals earn the same salary each year...