Wage Disparities
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The incidence of the tax in Tinytown could possibly have an effect on other people in the metropolitan area. For example if there is corporate income tax that is placed in Tinytown then the owners of the company could relocate outside of Tinytown. The metropolitan income tax could also have a positive and negative effect. The income tax that is placed on the people help generates revenue for the local government and improves infrastructure and public goods in the given area because it is proportional. This may sometimes leave some places underdeveloped while others improve
I think that Brownfield’s would be more likely to be in an issue in older urban areas. As we discussed in class an example would be an old gas station. The property sits idle for a long time until the cost of removing the old underground containers is more than that of the land. This characteristic would be common with older urban areas as opposed to newer ones.
If laborers refused to work with black workers wage discrimination would persist. If the white laborers refuse to work with black men the employment rate for the black workers will decrease, their real relative wage will also decrease. The black workers would rather take a lower income and work elsewhere where they can be in a comfortable environment rather than deal with discriminate co-workers.
If the consumers refuse to by the products than the company as a whole will suffer because they will experience a loss in revenue over declined purchases. This will affect both white and black employees. The company would have to make cut downs and lay off some people because of the loss. Wage discrimination will not persist in this situation because all employees will feel the effect of the consumer preference.