Economics Unit Portfolio Essay
Economics Unit Portfolio
1) In 1861 Abraham Lincoln introduced income tax during the Civil War when he needed money to pay his army.
2) That every consumer paid the same tax for the product no matter what their income is.
3) I would agree with Benton McMillin. Education is one considered a free institution. Using the education system helps someone become smarter and that helps accumulate wealth.
Part 2 – Internet Taxation
1) Because not collecting tax means the internet retailer can offer lower prices than other stores. It can kill their business with lower profit margins.
2) Taxing internet retailers would discourage investment employment growth. The shipping costs for online transactions can cancel out any price advantage.
3) I disagree that taxing the internet would discourage new technology investment and employment growth.
4) Computer hardware is more expensive than books or clothing.
Part 3 – Economic Detective activity
1) With the decline in business in Centreville the tax base will drop. There will be smaller amount of businesses and people paying taxes.
2) The operating budget would decrease because of the decline in businesses.
1) Increase fines for texting while driving, drunk driving, tailgating, aggressive driving, public intoxication, toll violations and other crimes. Increase fines for all violators of health and safety regulations in business, especially the food service industry. Lower the taxes can increase economic activity and provides incentives for taking risks in investments.
2) Increasing fines for individuals or businesses.
1) A. By using the capital funds from the other project to buy the warehouse. B. The indoor mall would attract businesses to lease from the city in the mall.
2) There will be more revenue from the sales and more jobs for people of the city.
3) Tax deductions for energy savings. Corporate income tax credit. Sales tax exemption. Payroll tax deductions.
Part 4 – Summary questions
1) Challenges to implement a fair tax system:
a. People agreeing on a fair tax system. It seems that most will not agree on every aspect of creating a fair tax system. b. Implementing a fair tax system would take power out of the hands of politicians. c. The poor would suffer more than the wealthy with a fair tax system.
2) Sales tax.
Each person is charged at the same rate on their purchases.
The wealthy will pay more sales tax because they have more disposable income.