Question
Given the following tax structure, Taxpayer Salary Total tax Mae $ 11,000 $ 550 Pedro $ 21,000 ??? a. What is the minimum tax that
Given the following tax structure,
| Taxpayer | Salary | Total tax | ||
| Mae | $ | 11,000 | $ | 550 |
| Pedro | $ | 21,000 | ??? | |
|
| ||||
a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.)
b. This would result in what type of tax rate structure?
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
