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(2)while for a retiree with an AIME of $2,000, the PIA was? (5 points) es is (3)

ID: 419037 • Letter: #

Question

(2)while for a retiree with an AIME of $2,000, the PIA was? (5 points) es is (3) while for a retiree with an AIME of 6000, the PIA was? (5 points to Part III Short Diseussion Questions (20 points) 1. In Montana, there are some large deposits of water containing dissolved methane (Fossil fuel). It is possible to pump this water out of the ground and release the methane, which can then be sold. This process produces lots of waste water, which poisonous properies, which is being dumped into nearby streams, which then flow onto the land of downstream ranches, severely damaging the land. Discuss this problem using the tools of public finance and propose two solutions(one involving taxes and the other involving property rights)10 points) (2/14106) 2. According to a recent Op-Ed piece by Joshua Foer in the New York Times ( study conducted during the 1980's found that men who kiss their wives before leavin

Explanation / Answer

The US environment protection agency projects that its final clean power plan (CPP) would reduce carbon emissions from existing fossil fuel. The US department of energy’s energy administration projects that by 2040, the CPP regulation if implemented would shrink the use of coal by more than half. To hit more ambitious emissions, policy makers must also cut the use of oil & gas. This section explores how fluctuations in oil, natural gases & coal sectors have affected severance taxes & royalties which are the state revenues directly tied to the resources.

Severance taxes are taxes on extracted non renewable resources such as crude oil, natural gas & coal & they are considered as most significant revenue instrument. Now it is a reasonable time for the states to improve the design of their rainy day funds to remove barriers to adequate funding.

Although states can’t alter the volatility of their economies in the short run, they can change their tax portfolios to minimize the effects of economic fluctuations on their fiscal conditions. Another efficient approach would be to base the fossil fuel tax rate on the carbon intensity of minerals produced thus helping internalize the external costs of environmental damages.