"Facts above": You have 1,000 households. The average income per household in your country is $25,000 and you need to raise about $8,000,000 in taxes to pay for roads, hospitals, national defense, airports, etc. How do you tax your population? Note that if household income drops below $10,000 families will have an incentive to stop working and collect welfare instead which reduces the number of households that can pay taxes!

4. Same facts as above, but new information reveals that 20 households are two-earner families without children earning about $200,000 per year. Medical Income after Tax Rate on Tax Rate on Total Gross National Expenses per medical Required Tax Tax Per Income after Gross Household income Households Income Income household expense Revenue Household? medical expense Income after medical and tax Total Tax 100 $12,000 $1,200.000 $3,000 $9,000 0% 0% $9,000 870 $22,184 $19,300,000 $3,000 $19.184 0% 0% $19.184 10 $50,000 $ $500,000 $23,000 $27,000 0% 0% $27,000 20 $200,000 $4,000,000 $3,000 $197,000 0% 0% $197,000 $25,000,000 $ 8,000,000 TE