Adopting the flat-tax proposal


Problem: A recent opinion poll shows the majority of respondents favor a flat tax of 20 percent on all income, subject to a $35,000 exemption. (The first $35,000 of income would be untaxed.) An independent politician adopts this flat-tax proposal. His opponent is a Democrat who favors increasing the top marginal tax rate to 42 percent. Based on the median voter model, which candidate is likely to win the election.

Solution Preview :

Prepared by a verified Expert
Taxation: Adopting the flat-tax proposal
Reference No:- TGS01745592

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)