9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 8 B My Blackboard Content - Blackboard Learn * Bb M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses vivu PE TUTU Household (Estimated) (Flat Tax) Flat) (Progressive) A $15,000 $750 % % % B $30,000 $3,000 se be % % o $53,000 $7,950 % % % D $84,000 $16,800 % ae % % E $133,000 $39,900 % % % F $295,000 $103,250 % % % (Round to one decimal place for all effective rates.) Conclusion Which plan seems the most fair to you? Which plan seems the least fair to you? Why? Make sure to answer in complete sentences with full explanation. A quality answer should have a few sentences of explanation with mathematical reasoning. Question Help: Message instructor Submit Question Click here for Support Hide 9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 88 Bb My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses $ $ $ $53,000 7.2% $ $ $ D $84,000 10% $ $ $ E $133,000 12.9% $ $ $ F $ $295,000 % Does your total tax collected add up to $800,000?? Effective Rate 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, an estimate of their essential expenses has been given. Compute the effective tax rate for each plan, relative to discretionary income (divide the tax paid by the discretionary income). Group Income Discretionary per Income Household (Estimated) Effective Rate (Flat Tax) Effective Rate (Modified Flat) Effective Rate (Progressive) > A $15,000 $750 % % % B $30,000 $3,000 % % % $53,000 $7,950 % & % D $84,000 $16,800 % % % Click here for Support Hide m E $133,000 $39. 9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 88 B My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses Group per per Household income After Taxes per Household income Arter Taxes Household $ $ $ $ A $15,000 $ $ $ $ $ B $30,000 $ $ $ $ $53,000 $ $ $ $ D $84,000 $ $ $ $ E $133,000 $ $ $ $ F F $295,000 Progressive Tax 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 of their income. Determine the tax rate necessary for group F to meet the country's financial need ($800,000). HINT Perform your calculations for total tax collected using the given rates for groups A - E. Then determine how much more tax you NEED to collect. Use that figure to determine the tax rate needed for group F. Group Income per Household Tax Rate (%) ) Income Tax per Household Total Tax Collected for All Households Income After Taxes per Household $ $ $ A $15,000 2.7% $ $ $30,000 -1 B 6.3% Click here for Support Hide 9:06 PM Sat Dec 4 1 59% AA bb.schoolcraft.edu + 8 B My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses 0 M17 Assignment: Explore Income Tax Progress saved Done VO Score: 0/10 0/1 answered Question 1 0/10 pts 299 Details Introduction Imagine the country is made up of 100 households. The federal government needs to collect $800,000 in income taxes to be able to function. The population consists of six (6) groups: o Group A: 20 households that earn $15,000 each o Group B: 21 households that earn $30,000 each o Group C: 21 households that earn $53,000 each Group D: 19 households that earn $84,000 each o Group E: 14 households that earn $133,000 each o Group F: 5 households that earn $295,000 each This scenario is roughly proportional to the actual United States population and tax needs. We are going to determine new income tax rates. Flat Tax The first proposal we'll consider is a flat tax -- one where every income group is taxed at the same percentage rate. What is the total income of our six groups (all 100 households)? $ % (round to one What flat tax rate would be necessary in order to collect $800,000? decimal place) Modified Flat Tax The second proposal we'll consider is a modified flat-tax plan, where everyone only pays taxes on any income over $20,000. So everyone in group A will pay no taxes. Everyone in group B will pay taxes on $10,000. Everyone in group C will only pay taxes on $33,000, etc. What is the total taxable income for the whole population? $ What flat tax rate would be necessary in order to collect $800,000 in this modified system? % (round to one decimal place) Summary of Flat Tax Complete the following table: Modified Flat Tax Plan Flat Tax Plan Income Tax Income After per Taxes Household Income per Household Group Income Tax per Household Income After Taxes $ S $ Click here for Support Hide A $15,000 9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 8 B My Blackboard Content - Blackboard Learn * Bb M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses vivu PE TUTU Household (Estimated) (Flat Tax) Flat) (Progressive) A $15,000 $750 % % % B $30,000 $3,000 se be % % o $53,000 $7,950 % % % D $84,000 $16,800 % ae % % E $133,000 $39,900 % % % F $295,000 $103,250 % % % (Round to one decimal place for all effective rates.) Conclusion Which plan seems the most fair to you? Which plan seems the least fair to you? Why? Make sure to answer in complete sentences with full explanation. A quality answer should have a few sentences of explanation with mathematical reasoning. Question Help: Message instructor Submit Question Click here for Support Hide 9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 88 Bb My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses $ $ $ $53,000 7.2% $ $ $ D $84,000 10% $ $ $ E $133,000 12.9% $ $ $ F $ $295,000 % Does your total tax collected add up to $800,000?? Effective Rate 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, an estimate of their essential expenses has been given. Compute the effective tax rate for each plan, relative to discretionary income (divide the tax paid by the discretionary income). Group Income Discretionary per Income Household (Estimated) Effective Rate (Flat Tax) Effective Rate (Modified Flat) Effective Rate (Progressive) > A $15,000 $750 % % % B $30,000 $3,000 % % % $53,000 $7,950 % & % D $84,000 $16,800 % % % Click here for Support Hide m E $133,000 $39. 9:07 PM Sat Dec 4 el 59% AA bb.schoolcraft.edu + 88 B My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses Group per per Household income After Taxes per Household income Arter Taxes Household $ $ $ $ A $15,000 $ $ $ $ $ B $30,000 $ $ $ $ $53,000 $ $ $ $ D $84,000 $ $ $ $ E $133,000 $ $ $ $ F F $295,000 Progressive Tax 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 of their income. Determine the tax rate necessary for group F to meet the country's financial need ($800,000). HINT Perform your calculations for total tax collected using the given rates for groups A - E. Then determine how much more tax you NEED to collect. Use that figure to determine the tax rate needed for group F. Group Income per Household Tax Rate (%) ) Income Tax per Household Total Tax Collected for All Households Income After Taxes per Household $ $ $ A $15,000 2.7% $ $ $30,000 -1 B 6.3% Click here for Support Hide 9:06 PM Sat Dec 4 1 59% AA bb.schoolcraft.edu + 8 B My Blackboard Content - Blackboard Learn EB M17 Assignment: Explore Income Tax - Blackboard Learn = My Courses 0 M17 Assignment: Explore Income Tax Progress saved Done VO Score: 0/10 0/1 answered Question 1 0/10 pts 299 Details Introduction Imagine the country is made up of 100 households. The federal government needs to collect $800,000 in income taxes to be able to function. The population consists of six (6) groups: o Group A: 20 households that earn $15,000 each o Group B: 21 households that earn $30,000 each o Group C: 21 households that earn $53,000 each Group D: 19 households that earn $84,000 each o Group E: 14 households that earn $133,000 each o Group F: 5 households that earn $295,000 each This scenario is roughly proportional to the actual United States population and tax needs. We are going to determine new income tax rates. Flat Tax The first proposal we'll consider is a flat tax -- one where every income group is taxed at the same percentage rate. What is the total income of our six groups (all 100 households)? $ % (round to one What flat tax rate would be necessary in order to collect $800,000? decimal place) Modified Flat Tax The second proposal we'll consider is a modified flat-tax plan, where everyone only pays taxes on any income over $20,000. So everyone in group A will pay no taxes. Everyone in group B will pay taxes on $10,000. Everyone in group C will only pay taxes on $33,000, etc. What is the total taxable income for the whole population? $ What flat tax rate would be necessary in order to collect $800,000 in this modified system? % (round to one decimal place) Summary of Flat Tax Complete the following table: Modified Flat Tax Plan Flat Tax Plan Income Tax Income After per Taxes Household Income per Household Group Income Tax per Household Income After Taxes $ S $ Click here for Support Hide A $15,000