The table below provides information about two individuals, Michael and Lindsay. Assume the following: Income tax brackets are the same as in Study Exercise 10. All after-tax income is either saved or spent. There is a sales tax of 7 percent on all goods and services.Annual pre-tax taxable incomeMichaelLindsayPercentage of after-tax income saved$35 000$400 000Income tax paid ($)10%40%After-tax incomeSales tax paid ($)Percentage of pre-tax incomepaid in income taxPercentage of pre-tax income paid in sales taxOverall average tax ratea. Calculate the income tax and sales taxes that each individual will pay annually and complete the remainder of the table. (Remember when calculating the sales tax paid that the individual’s total spending includes their sales tax paid.)b. Is the income tax progressive or regressive? How do you know?c. Is the sales tax progressive or regressive? How do you know?d. What effect does the sales tax have on the progressivity of this tax system overall? What government policy could address this effect?
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER INFORMATION" section.
- Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
- Click “PREVIEW” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
-