Business Tax Rates If your Taxable Income Is Plus This Percentage on the Excess over the Base You Pay This Amount on the Base of the Bracket SRO SR1,620,000 SR4,140,000 18% 21% 24% Up to SR9,000,000 SR9,000,000-SR21,000,000 SR21,000,000- SR42,000,000 SR42,000,000- SR63,000,000 SROver 63,000,000 SR9,180,000 27% SR14,850,000 30% Personal Tax Rates If your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base 8% 12% Up to SR12,000 SR12,000-SR32,000 SR32,000-SR70,000 SROver 70,000 SRO SR960 SR3,360 SR10,200 18% 30% Given these tax schedules, calculate the tax liabilities for: Dekk Wheelwright Company, which earns an income of SR50,000,000 The following three individual taxpayers: (1) Daggar, a baker earning SR30,000 per year; (2) Birna, a farmer earning SR50,000 per year; (3) Kolli, a banker earning SR80,000 per year Note: Round your average tax rate answers to two decimal places. Average Tax Rate Taxpayer Dekk Wheelwright Tax Obligation SR SR Daggar Birna Kolli Assume that Daggar owes the same tax liability under both the current tax system and the proposed (progressive) system. As an economically rational taxpayer, why should he prefer the current system? Because under the progressive tax system the next sodor earned would be taxed at the rate of 10%; under the current system, it would not be subject to any tax. Because under the current system the next sodor earned would be taxed at the rate of 1.2%; under the progressive system, it would not be subject to any tax. O Because under the progressive tax system the next sodor earned would be taxed at the highest tax rate (30%); under the current system, it would be exempt from additional taxes. Policy Proposal 2: Assess a special tax on businesses that own more than 10 horses or oxen. What effect will this tax have on Rodosian businesses? O The tax will not affect the businesses being assessed the tax or the Treasury's tax revenues. This tax on more than 10 horses or oxen has the potential to penalize businesses from growing beyond a certain level. This will reduce the Treasury's tax revenues and potentially limit the growth potential and sales of businesses that provide goods and services to the taxpayers being assessed. This is an example of a sin tax. Business Tax Rates If your Taxable Income Is Plus This Percentage on the Excess over the Base You Pay This Amount on the Base of the Bracket SRO SR1,620,000 SR4,140,000 18% 21% 24% Up to SR9,000,000 SR9,000,000-SR21,000,000 SR21,000,000- SR42,000,000 SR42,000,000- SR63,000,000 SROver 63,000,000 SR9,180,000 27% SR14,850,000 30% Personal Tax Rates If your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base 8% 12% Up to SR12,000 SR12,000-SR32,000 SR32,000-SR70,000 SROver 70,000 SRO SR960 SR3,360 SR10,200 18% 30% Given these tax schedules, calculate the tax liabilities for: Dekk Wheelwright Company, which earns an income of SR50,000,000 The following three individual taxpayers: (1) Daggar, a baker earning SR30,000 per year; (2) Birna, a farmer earning SR50,000 per year; (3) Kolli, a banker earning SR80,000 per year Note: Round your average tax rate answers to two decimal places. Average Tax Rate Taxpayer Dekk Wheelwright Tax Obligation SR SR Daggar Birna Kolli Assume that Daggar owes the same tax liability under both the current tax system and the proposed (progressive) system. As an economically rational taxpayer, why should he prefer the current system? Because under the progressive tax system the next sodor earned would be taxed at the rate of 10%; under the current system, it would not be subject to any tax. Because under the current system the next sodor earned would be taxed at the rate of 1.2%; under the progressive system, it would not be subject to any tax. O Because under the progressive tax system the next sodor earned would be taxed at the highest tax rate (30%); under the current system, it would be exempt from additional taxes. Policy Proposal 2: Assess a special tax on businesses that own more than 10 horses or oxen. What effect will this tax have on Rodosian businesses? O The tax will not affect the businesses being assessed the tax or the Treasury's tax revenues. This tax on more than 10 horses or oxen has the potential to penalize businesses from growing beyond a certain level. This will reduce the Treasury's tax revenues and potentially limit the growth potential and sales of businesses that provide goods and services to the taxpayers being assessed. This is an example of a sin tax