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Given these tax schedules, calculate the tax liabilities for: . Nl's Clothworkers Company, which eams an income of SR35,000,000 The following three Individual taxpayers: (1)

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Given these tax schedules, calculate the tax liabilities for: . Nl's Clothworkers Company, which eams an income of SR35,000,000 The following three Individual taxpayers: (1) Styrt, a baker earning SR24,000 per year; (2) Bera, a farmer earning SR54,000 per year; (3) Einar, a banker earning SR95,000 per year Note: Round your average tax rate answers to two decimal places Taxpayer Nal's Clothworkers Tax Obligation Average Tax Rate % SR Styrt SR % Bera SR Einar SR % if you were a Rodonian taxpayer, such as Styrr, Bera, or inac, would you prefer the existing tax system or the progressive tax system? Why? The existing tax system, because my tax obligation would be greater than that incurred under the progressive system. This would reduce my disposable income. The existing tax system, because my tax obligation would be significantly less than that under the progressive system. This would increase my disposable income The progressive tax system, because my tax obligation would be significantly greater than that incurred under the existing system. This would reduce my disposable income. 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? 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 Policy Proposal 1: Replace the existing system with a progressive tax system that would tax business and individuals, using these schedules: 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 SR960,000 12% 18% SR2,220,000 24% Up to SR8,000,000 SR8,000,000-5R15,000,000 SR15,000,000- SR31,000,000 SR31,000,000- SR47,000,000 SRover 47,000,000 Personal Tax Rates If your Taxable income is SR6,060,000 30% SR10,860,000 36% You Pay This Amount on the base of the Bracket Plus This Percentage on the Excess over the Base 696 SRO SR480 10% Up to SR8,000 SRB,000-SR28,000 SR28,000-SR62,000 SROver 62,000 SR2,480 16% SR7,920 25%

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