ch 3-4 - The Big Tradeoff Taxing the rich to help the poor,...

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The “Big Tradeoff” Taxing the rich to help the poor, i.e., Redistributing buying power from the rich to the poor. “Progressive income taxes” assess higher rate against large incomes than against small incomes. The wealthy pay a proportionately larger share of total taxes. How do the poor use welfare payments? Do wealthy taxpayers realize any benefits from that portion of their taxes that go to help the poor? Do the wealthy pay a proportionately larger portion of the cost of public education? Do the wealthy benefit from that portion of their taxes that fund public education? Do high taxes on the wealthy discourage investment, initiative, and hard work?
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Opportunity Cost The highest-valued alternative that we give up to get something is the opportunity cost of the activity chosen. Central idea of economics: every choice involves a cost. The opportunity cost of being a full-time student includes the earnings you could make from a job
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ch 3-4 - The Big Tradeoff Taxing the rich to help the poor,...

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