• February 13th, 2017

2008 presidential campaign.

Paper , Order, or Assignment Requirements

during the 2008 presidential campaign, senator obama proposed eliminating the income tax for all seniors earning less than $50,000. Seniors making above this threshold would still be subject to the income tax, which could potentially mean a tax liability of thousands of dollars. Sketch a budget constraint in a leisure-income diagram – a.k.a. a leisure-goods diagram – that is consistent with this proposal. if this proposal were adopted, very briefly explain what would happen to the labor supply for seniors by referencing your findings from 18-2 on the Hicksian decomposition of the Slutsky equation? you can assume the starting point is an income tax that is just a proportional income tax and not a progressive income tax.

 

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