public_exam2_lists_fall07 - PAM 204- Exam #2 Lists problems...

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PAM 204- Exam #2 Lists problems with poverty line/ poverty rate bundle has changed ignores differences in cost of living noncash transfers not included child care expenses ignored poverty rate computed based on before-tax income why care about income inequality differences in legal rights differences in political influence more inequality- adverse effects on health live in wealthy country that does not redistribute- suffer big utility loss deductions (from gross income to adjusted gross income) IRA contributions Alimony HI premiums paid by self-employed ½ payroll taxes paid by self-employed contributions to self-employed pension plans itemized deductions medical/dental expenses exceeding 7.5% of AGI state/local taxes mortgage interest payments gifts to charity casualty losses theft losses property losses unreimbursed employee expenses why care about marriage tax across-marriage horizontal equity is a goal encourage marriage marriage tax might reduce labor supply of secondary earner mandated benefit versus no government action
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