2. Looking back at your results for the Tax Game, which tax choice made your overall system most progressive? Why?
Which choice made your overall system most regressive? Why?
(USE ATTACHMENT FOR QUESTION 2 ONLY)
3. If you were advising a Congressional candidate on how she should propose changes in the payroll tax, what would you recommend? In your explanation address issues of the tax incidence, and regressivity or progressivity of the tax.
4. Your politician friend wants to do a survey to measure the impact of a tax on wealth held by households in her community. You remember that the survey could be misleading if it interviews only 100 randomly-selected households. Why might this be?
5. You are working for a politician who worries that a new tax will cause more inequality. She shows you the following results. Explain to her what it tells us about the impact of the tax
Wealth Gini before tax: 0.8
Wealth Gini after tax: 0.9
Income Gini before tax 0.5
Income Gini after tax 0.4
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