Question

If the statement is false, make a correction to make the statement true. Each question is worth 5 points (for a total of 60 points). Partial answer (that is, the statement is false, but your correction is wrong) will get ½ credit.

4. A progressive tax policy cannot be achieved with the enactment of tax credits that are targeted to individuals based on their income level. True/False _____________ Correction to make true ____________________________________________________________________________________

5. Statutory and Economic Incidence when analyzing tax policy options are always the same thing. True/False ________________ Correction to make true ____________________________________________________________________________________

6. Moving to a jurisdiction which has a lower state and local tax burden reflects the general rule for tax policy analysis. True/False ________________ Correction to make true ____________________________________________________________________________________

Answer 1

False.

Tax credits based on an individual's income level are one of the most effective tools to create a progressive tax policy since an individual is made to pay taxes based on their income level since the number of tax credits they receive lower with increasing income.

False.

Statutory incidence is the burden of the tax borne by the party that sends the check to the government. Economic incidence is the burden of taxation measured by the change in resources available to any economic agent as a result of taxation.So they're not always the same thing

True.