public_ps3_sp09

public_ps3_sp09 - NAME_ PAM 204- Problem Set #3 Complete...

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NAME_________________________ PAM 204- Problem Set #3 Complete the problem set on these four sheets of paper. Circle your answers to the multiple choice questions. Note that there are seven problems. PS #3 is out of 10 points. #1) Consider an EITC program in which the maximum credit is $3000. An individual who has earned income between $7000 and $11,000 receives the maximum credit (ie- someone who has earned income of $10,000 will have total income of $13,000 because of the tax credit). An individual who has earned income of $15,000 has total income of $16,000. What is the implicit tax rate that the individual who has earned income of $15,000 faces? Round your answer to two decimal places if necessary. (1 point) #2) Consider an EITC program in which the maximum credit is $4000. An individual who has earned income between $8000 and $12,000 receives the maximum credit (ie- someone who has earned income of $10,000 will have total income of $14,000 because of the tax credit). An individual who has earned income of $20,000 has total income of $21,000. What is the implicit tax rate that the individual who has earned income of $20,000 faces? Round your answer to two decimal places if necessary. (1 point)
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3. Suppose that an EITC program is in place.
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This note was uploaded on 09/13/2009 for the course PAM 2040 taught by Professor Lewis during the Spring '07 term at Cornell.

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public_ps3_sp09 - NAME_ PAM 204- Problem Set #3 Complete...

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