AP Micro 12 by Savannah Julius https://padlet.com/8juliuss/apmicro12 Design of the Tax System en-us 2017-12-20 15:10:18 UTC 2025-10-15 13:58:52 UTC hello@padlet.com https://img.etimg.com/thumb/msid-53449689,width-672,resizemode-4,imgsize-77615/wealth/tax/five-interest-incomes-you-are-likely-to-forget-to-include-in-your-tax-return/tax-xthinkstock.jpg Quizlet 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217509692 https://quizlet.com/_47wu6y]]> 2017-12-20 15:12:20 UTC https://padlet.com/8juliuss/apmicro12/wish/217509692 Frequent Errors 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217509706 https://docs.google.com/document/d/1_IFB5m5HrTX_XRpWQVx4ocjUQtbchqgkfQxPMDhCwkc/edit ]]> 2017-12-20 15:12:24 UTC https://padlet.com/8juliuss/apmicro12/wish/217509706 Why govt taxes 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217509916 fix externalities
provide public goods
regulate the use of common goods]]> 2017-12-20 15:13:11 UTC https://padlet.com/8juliuss/apmicro12/wish/217509916 Federal government 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217510021 2/3 of all taxes]]> 2017-12-20 15:13:35 UTC https://padlet.com/8juliuss/apmicro12/wish/217510021 Receipts 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217510095 Sources of Revenue
1. individual income tax
2. payroll tax / social insurance tax
3. corporate income tax]]> 2017-12-20 15:13:51 UTC https://padlet.com/8juliuss/apmicro12/wish/217510095 Spending 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217510466 Expenditures
1. social security (transfer payments too) [1/4 of all spending]
2. national defense
3. Medicare

income security = payments to poor families]]> 2017-12-20 15:15:09 UTC https://padlet.com/8juliuss/apmicro12/wish/217510466 Budget 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217510789 deficit, surplus, balanced]]> 2017-12-20 15:16:12 UTC https://padlet.com/8juliuss/apmicro12/wish/217510789 State and local government 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217510937 1/3 of all taxes]]> 2017-12-20 15:16:37 UTC https://padlet.com/8juliuss/apmicro12/wish/217510937 Receipts 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511007 Sources of Revenue
1. sales tax (a regressive tax)
2. property tax]]> 2017-12-20 15:16:51 UTC https://padlet.com/8juliuss/apmicro12/wish/217511007 Spending 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511124 Expenditures
1. Education (k-12 schools, public universities)
2. public welfare
3. transportation]]> 2017-12-20 15:17:17 UTC https://padlet.com/8juliuss/apmicro12/wish/217511124 two objectives of tax system 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511329 efficiency and equity]]> 2017-12-20 15:18:00 UTC https://padlet.com/8juliuss/apmicro12/wish/217511329 failures to efficiency 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511435
  • revenue is transferred from private sector to government
  • distortion in recourse allocation
    • deadweight loss 
    • administrative burden
  • complying with tax laws and regualtions
    • ]]>     2017-12-20 15:18:24 UTC https://padlet.com/8juliuss/apmicro12/wish/217511435     Deadweight Losses 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511538 taxes distort incentives

    deadweight loss occurs when the total surplus falls more than the tax revenue]]>     2017-12-20 15:18:44 UTC https://padlet.com/8juliuss/apmicro12/wish/217511538     consumption tax 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511838 encourages savings]]> 2017-12-20 15:19:38 UTC https://padlet.com/8juliuss/apmicro12/wish/217511838 Administrative Burden 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217511900 filling out tax forms
    effort required to keep track of financials
    force to make people comply to tax laws

    - legal tax avoidance w/ tax lawyers and accountants who look for loopholes in tax system]]>     2017-12-20 15:19:51 UTC https://padlet.com/8juliuss/apmicro12/wish/217511900     Marginal Tax Rates v. Average Tax Rates 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217512226
  • average tax rate gauges sacrifices made by tax payers
  • marginal tax rate gauges how much the tax system distorts incentives
    • ]]>     2017-12-20 15:20:52 UTC https://padlet.com/8juliuss/apmicro12/wish/217512226     Lump-Sum Tax 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217512432 most efficient -- not most equitable]]> 2017-12-20 15:21:39 UTC https://padlet.com/8juliuss/apmicro12/wish/217512432 Benefits Principle 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514150 i.e. Gas Tax

    --> supports idea that the wealthy should be taxed more]]>     2017-12-20 15:26:20 UTC https://padlet.com/8juliuss/apmicro12/wish/217514150     Ability-to-Pay Principle 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514219 supports idea that the wealthy should be taxed more]]> 2017-12-20 15:26:30 UTC https://padlet.com/8juliuss/apmicro12/wish/217514219 Vertical Equity 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514262 Proportional
    Regressive
    Progressive]]>     2017-12-20 15:26:40 UTC https://padlet.com/8juliuss/apmicro12/wish/217514262     Horizontal Equity 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514326 not common/possible because too difficult to determine if families are alike enough or not]]> 2017-12-20 15:26:53 UTC https://padlet.com/8juliuss/apmicro12/wish/217514326 Tax Incidence and Tax Equity 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514402 tax incidence = study of who bears the burden of taxes

    tax equity = how the tax burden is distributed

    flypaper theory]]>     2017-12-20 15:27:07 UTC https://padlet.com/8juliuss/apmicro12/wish/217514402     excise tax 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217514801 tax on specific goods

    gas, alcohol, cigarettes]]>     2017-12-20 15:28:27 UTC https://padlet.com/8juliuss/apmicro12/wish/217514801     Flat Tax 8juliuss https://padlet.com/8juliuss/apmicro12/wish/217515491
  • eliminate special deductions
  • eliminate administrative burden
  • would all be from source of income
  • deduct legitimate business expesnses
    • --> BUT middle class would be hurt the most
    ]]>     2017-12-20 15:30:52 UTC https://padlet.com/8juliuss/apmicro12/wish/217515491     8juliuss https://padlet.com/8juliuss/apmicro12/wish/217625453 2017-12-21 03:11:07 UTC https://padlet.com/8juliuss/apmicro12/wish/217625453