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Extra Credit Finance in Action - Taxes Given these tax schedules, calculate the tax liabilities for: - Gullivers' Goldsmiths Company, which earns an income of

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Extra Credit Finance in Action - Taxes Given these tax schedules, calculate the tax liabilities for: - Gullivers' Goldsmiths Company, which earns an income of SP25,000,000 - The fallowing three individual taxpayers: (1) Gunnar, a beekeeper earning SR12,000 per year; (2) Marget, a cooper (barrel maker) earning SR35,000 per year; (3) Bjom, a banker earning SR70,000 per year Note: Round your average tax rate answers to two decimal places. Assume thot Gunnar owes the same tax liability under both the current tax system and the proposed (proci 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. Becnuse under the current system the next sodor earned would be taxed at the rate of 1,2%; ander 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 highest tax rate (20\%); under the current system, it would be exempt from additional taxes. Policy Proposal 2t Impose a special tax on individual taxpayers who purchase or own a cart and wagon that costs more than sfte,000. (The average cost of a Rodosian cart or wagon is SR6,000.) What effect will this tax have on Rodosian businesses? This example of an income tax is designed to punish fich Rodosians for eorneng sufficient income to alford expenisive carts and wagons. This luxury tax effectively punishes individual consumers, as well as the manufacturers and sellers, of what King Valdimar or his advisors construe as excessively expensive carts and wagons. This progressive tax is designed to encourage the purchase and use of carts and wagons costing more than sel2,000

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