Progressive Income Tax

Author: Client Uploads

April 23rd, 2021

In lecture, we discussed the effects of UBI, EITC, progressive income tax, AFDC, and TANF on labor supply decisions. a) Choose one of these programs. Briefly discuss its effect(s) on labor supply, as predicted by the labor-leisure model, as well as potential non-labor supply effects. b) Do you think we should evaluate the program you discussed in (a) based solely on its effect on labor supply? Explain. c) If not, what other factors should we consider when evaluating the program you discussed in (a)? Explain. Please respond to the above prompt(s). Generally, responses should be at least 75-150 words (aggregate). Explain your reasoning. Use examples and evidence where appropriate. Use proper grammar, correct spelling, complete sentences, and paragraphs. Be thoughtful, professional, and polite.

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