21 Taxes, Social Insurance, and Income Distribution  Addressing externalities  Providing public goods, maintaining common resources  Taxes, poverty,

Slides:



Advertisements
Similar presentations
Public Goods and Tax Policy
Advertisements

7 chapter: >> Taxes Krugman/Wells Economics
Chapter 5 Efficiency and Equity
Taxes CHAPTER 8 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain how taxes change prices.
16 Public Finance: Expenditures and Taxes McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
AP Microeconomics Unit 5: The Role of Government
Taxes, Social Insurance,
In this chapter, look for the answers to these questions:
Difficult Topics in Microeconomics: Tax analysis Luis Fernandez And Teresa Fischer.
Copyright©2004 South-Western 12 The Design of the Tax System.
Ch. 5: EFFICIENCY AND EQUITY
TAXES CHANGE BEHAVIOR. 1.PAY FOR THE COST OF GOVERNING WHAT ARE THE FUNCTIONS OF TAXATION?
The Design of the Tax System
Copyright©2004 South-Western 12 The Design of the Tax System.
Efficiency and Deadweight Loss
Taxes, Social Insurance, and Income Distribution <Review Slides>
Ch. 5: EFFICIENCY AND EQUITY
When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Describe the effects of sales taxes and excise.
The Design of the Tax System
Notes #14 – Taxes, Taxation and where our money goes! Economics Mr. Burdette MHS
Efficiency and Deadweight Loss
Types of Taxes personal income tax (all types of income) payroll tax (15.3 % of wage and salary income) corporate income tax (corporate profits) excise.
Public Choice Theory and the Economics of Taxation Chapter 17.
© 2007 Thomson South-Western. “In this world nothing is certain but death and taxes.”... Benjamin Franklin Taxes paid in Ben Franklin’s.
Consumer Surplus Consumer surplus The difference between the highest price a consumer is willing to pay and the price the consumer actually pays.
Copyright McGraw-Hill/Irwin, 2002 Public Choice Theory Government Failure Apportioning the Tax Burden Tax Applications Tax Incidence and Efficiency.
Public Choice Theory Apportioning the Tax Burden Tax Applications Tax Incidence and Efficiency Loss The U.S. Tax Structure Public Choice Theory and the.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
C h a p t e r eighteen © 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1 st ed. Prepared by: Fernando & Yvonn.
Chapter 1: Introduction to Public Finance Chapter 1 Introduction to Public Finance Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights.
Public Goods Demand for a Public Good Optimal Amount of a Public Good Cost-Benefit Analysis Spillover Costs and Benefits Market-Based Approach to.
CHAPTER 21 Taxes, Social Insurance, and Income Distribution.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 12 The Design of the Tax System. Objectives 2.) Understand the efficiency cost of taxation. 3.) Learn the criteria for evaluating the equity of.
Excise Tax And Allocative Efficiency. Effect of a $.15 Excise Tax QuantitySupply Price Before Tax Supply Price After Tax.
Quiz III Consumer and Producer Surplus. 1. Determine the consumer surplus at the equilibrium price shown below
The Design of the Tax System Chapter 12. “ In this world nothing is certain but death and taxes. ”... Benjamin Franklin Taxes paid.
The design of the tax system Chapter 12. A financial overview of the U.S government Amazingly, the U.S federal government collects 2/3 of the taxes in.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Taxes CHAPTER 8 When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Explain how taxes change prices.
Taxes Chapter 12 Issues of Efficiency and Equity.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Taxation Frederick University 2009.
Taxes on Producers.
Monopoly & Efficiency Deadweight Loss Analysis. Allocative Efficiency Total Welfare is maximized only when MC = MB for society –Since MB = Price => only.
Chapter 17 Public Choice Theory and the Economics of Taxation
Module Supply and Demand: Quantity Controls KRUGMAN'S MACROECONOMICS for AP* 9 Margaret Ray and David Anderson.
The Economic Implication of Taxes PowerPoint® Slides by Can Erbil © 2004 Worth Publishers, all rights reserved.
The Tax System  Most people agree that taxes should impose as small a cost on society as possible.  The tax system should be efficient and equitable.
CHAPTER Externalities And Public Goods CHAPTER 21 Taxes, Social Insurance, and Income Distribution.
Efficiency and Deadweight Loss
+ Deadweight Loss and Efficiency. + Why pay taxes?
Chapter 3: Inefficiency Adam Brain. Inefficiency l Occurs in situations where optimum price and quantity are not met. l Numerous causes.
Taxes (3/3/16) I. Basics about taxes A.2 principles of tax fairness 1.Benefits principle: those who benefit should pay a.Examples: b.Any problems with.
The Design of the Tax System 1. 2 Government Revenue as a Percentage of GDP This figure shows revenue of the federal government and of state and local.
Government Policies to Redistribute Income and Wealth 3 Main Policies 1.Monetary Benefits 2.The Tax System 3.Direct Provision of Goods and Services.
Chapter 18 Public Finance: Expenditures and Taxes Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Public Goods, Externalities and Taxes
Taxes AP Micro 9/20.
Mr. Bernstein Module 50: Efficiency and Deadweight Loss October 2017
Total Social Surplus = Consumer Surplus + Producer Surplus
Chapter 7 Taxes.
Chapter 17 Public Choice Theory and the Economics of Taxation
Consumer and Producer Surplus
Chapter 5 (pp 99-end) Public Goods and Externalities
Taxes: Equity versus Efficiency
PUBLIC GOODS AND EXTERNALITIES
Efficiency and Deadweight Loss
Welfare Economics Part II
Chapter 5 (pp 99-end) Public Goods and Externalities
Presentation transcript:

21 Taxes, Social Insurance, and Income Distribution  Addressing externalities  Providing public goods, maintaining common resources  Taxes, poverty, & income redistribution Public Policy Chpt 19 Chpt 20 Chpt 21

Quantity (100s) Price ($) Producer and Consumer Surplus  Efficient if there are no market failures.

Quantity (100s) Price ($) Excise Tax $3  An excise tax creates deadweight loss (inefficiency). Price: Quantity:

Quantity (100s) Price ($)  If demand is more elastic… Excise Tax

Quantity (100s) Price ($) $3  … smaller price change but greater deadweight loss Excise Tax Price: Quantity:

Equity in Taxes Benefits Principle Ability-to-Pay Principle Quintile Average family income Average tax rate Lowest$14,9005.4% Highest$182, % Federal Taxes

Equity vs. Efficiency Rent control Lump-sum tax vs. Property tax Free parking at Regis Income tax?  Do high marginal tax rates discourage productive activity?

Progressive & Regressive Taxes Income ($000s) Taxes ($000s) Average tax rate: Marginal tax rate: Average tax rate: Marginal tax rate:

Income ($000s) Taxes ($000s) Average tax rate: Marginal tax rate: Average tax rate: Marginal tax rate: Progressive & Regressive Taxes

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.