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1) A taxpayer has gross income of $125,000 and tax deductions of $12,000. How much income tax does the taxpayer owe if the country has

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1) A taxpayer has gross income of $125,000 and tax deductions of $12,000. How much income tax does the taxpayer owe if the country has a flat tax rate of 11%? Show all work. 2) A taxpayer has a gross income of $84,250 and tax deductions of $8,000. How much income tax does the taxpayer owe if the country has a flat tax rate of 13.5%? Show all work. 3) A taxpayer has taxable income of $130,500 and tax credits of $14,000. How much income tax does the taxpayer owe if the country has a flat tax rate of 16.8%? Show all work. 4) A taxpayer has a gross income of $52,800, tax deductions of $9,400, and tax credits of $1,200. How much income tax does the taxpayer owe if the country has a flat tax rate of 9.7%? Show all work. 5) Which saves a taxpayer more, a tax deduction of $1,000 or a tax credit of $1,000? Explain clearly. 6) Describe the difference between "taxing income" and "taxing consumption." Give real-world examples of how those of us in New York do both of these. 7) Problems #1 through #5 above ask you to use a flat tax when calculating the tax. However, this is not the sort of income taxes that we pay here in the U.S. or here in New York State. Instead, we pay graduated/progressive income taxes (federal graduated income taxes and NY state graduated income taxes). Read section 5.2 in the Mathandyou.com text, and also view some videos related to graduated/progressive income tax if needed. a) Write a paragraph to describe the difference between a flat tax and a graduated income tax. b) Explain/describe at least one positive aspect, and one negative aspect of using a graduated/progressive income tax rather than using a flat tax on income. c) Explain/describe at least one positive aspect, and one negative aspect of using a flat income tax rather than using a graduated/progressive tax on income

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