5) Complete this table for both the plans Group A B C D E F A B C D E F Flat Tax Plan Income per Income tax household per household $12,000 $29,000 $50,000 $79,000 $129,000 $295,000 A B C D E F The third proposal we'll consider is a progressive tax, where lower income groups are taxed at a lower percent rate, and higher income groups are taxed at a higher percent rate. For simplicity, we're going to assume that a household is taxed at the same rate on all their income. Group Income per Tax rate household (%) 6) Set progressive tax rates for each income group to bring in enough money. There is no one right answer here - just make sure you bring in enough money! Income tax per household Total tax collected for all households $12,000 $29,000 $50,000 $79,000 $129,000 $295,000 Group Income per household (estimated) $12,000 $29,000 $50,000 $79,000 $129,000 $295,000 Problem Solving 33 Modified Flat Tax Plan Income after Income tax Income taxes per household after taxes 37/476 Discretionary Effective Income rate, flat 7) Discretionary income is the income people have left over after paying for necessities like rent, food, transportation, etc. The cost of basic expenses does increase with income, since housing and car costs are higher, however usually not proportionally. For each income group, estimate their essential expenses, and calculate their discretionary income. Then compute the effective tax rate for each plan relative to discretionary income rather than income. Project 2: Calculating Taxes. This better total to $800,000 Income after taxes per household Effective rate, Effective rate, modified progressive 8) Which plan seems the most fair to you? Which plan seems the least fair to you? Why? (

iferent: thase iacome 4