Taxation

Principles of Economics // Fall 2025

Prof. Santetti

marcio.santetti@emerson.edu

A complicated matter

A complicated matter




U.S. internal revenue code

A complicated matter



Taxes can:

  • Stimulate desirable behavior;

  • Discourage unwanted behavior.

Progressivity

Progressivity


3 instances of tax progressivity:


  • Regressive regime;

  • Proportional regime;

  • Progressive regime.

Tax dimensions

Tax dimensions


Federal taxes

  • Income tax;

  • Taxes for federal social insurance programs;

  • Corporate taxes;

  • Excise taxes.

State and local taxes

  • Excise taxes;

  • Property taxes;

  • Income taxes.

Current events

Current events




“One, Big Beautiful Bill” Act (2025)

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