olicy 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	You Pay This Amount on the Base of the Bracket		Plus This Percentage on the Excess over the Base
Up to SR8,000,000	SR0		12%
SR8,000,000SR15,000,000	SR960,000		18%
SR15,000,000SR31,000,000	SR2,220,000		24%
SR31,000,000SR47,000,000	SR6,060,000		30%
SROver 47,000,000	SR10,860,000		36%
Personal Tax Rates
If your Taxable Income Is	You Pay This Amount on the Base of the Bracket		Plus This Percentage on the Excess over the Base
Up to SR8,000	SR0		6%
SR8,000SR28,000	SR480		10%
SR28,000SR62,000	SR2,480		16%
SROver 62,000	SR7,920		25%

Given these tax schedules, calculate the tax liabilities for:

	Ferskt Fishmongers Company, which earns an income of SR35,000,000
	The following three individual taxpayers: (1) Bjork, a baker earning SR24,000 per year; (2) Frida, a farmer earning SR54,000 per year; (3) Ari, a banker earning SR96,000 per year

Note: Round your average tax rate answers to two decimal places.

Taxpayer	Tax Obligation	Average Tax Rate
Ferskt Fishmongers	SR	%
Bjork	SR	%
Frida	SR	%
Ari	SR	%

If you were a Rodosian taxpayer, such as Bjork, Frida, or Ari, would you prefer the existing tax system or the progressive tax system? Why?

(T or F) 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.

(T or F) The existing tax system, because my tax obligation would be greater than that incurred under the progressive system. This would reduce my disposable income.

(T or F) The existing tax system, because my tax obligation would be significantly less than that under the progressive system. This would increase 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?

(T or F) This is an example of a sin tax.

(T or F) The tax will not affect the businesses being assessed the tax or the Treasurys tax revenues.

(T or F) 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 Treasurys tax revenues and potentially limit the growth potential and sales of businesses that provide goods and services to the taxpayers being assessed.