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Policy Proposal 1: Replace the existing system with a progressive tax system that would tax business and individuals, using these schedules Business Tax Rates You Pay This Amount on Pus This Percentage on If your Taxable Income Is Up to 5,000,000 5,000,000-10,000,000 10,000,000-20,000,000 20,000,000-40,000,000 Over 40,000,000 the Base of the Bracket SRO SR500,000 SR1,250,000 SR3,250,000 SR8,250,000 the Excess over the Base 10% 15% 20% 25% 30% Personal Tax Rates You Pay This Amount on Pus This Percentage on If your Taxable Income Is Up to 6,000 6,000-24,000 24,000-50,000 Over 50,000 the Base of the Bracket SRO SR300 SR2,100 SR6,000 the Excess over the Base 5% 10% 15% 20% Given these tax schedules, calculate the tax liabilities for Taxpayer Tax obligation Average Tax Rate Ferskt Fishmongers Company, which earns an income of SR25,000,000 Ferskt Fishmongers Bjork Frida Ari The following three individual taxpayers: (1) Bjork, a farmer earning SR12,000 per year; (2) Frida, a teacher earning SR35,000 per year; (3) Ari, a merchant earning SR70,000 per year Assume that Bjork 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 highest tax rate (20%); under the current system, it would be exempt from additional taxes. 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 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