Question 3 please

ezto.mheducation.com Question 3 - Economics and Ethics Discussion Questions - Connect Course Hero screenshot macbook pr - Google Search Economics and Ethics Discussion Questions Saved Help Save & Exit Submit Check my work 3 Suppose that in a small country, government spending is equal to $20 million. There are 10,000 households in this country. The typical distribution of income for these 10,000 households is shown below. (Note: Total GDP for this small country is $522.2 million.) Average Number of Percentage of Total Income points Household Income Households (% GDP) $15,000 2,500 7.2 25,000 6,00 28.7 75,000 ,000 14.4 2Book 150,000 40 11.5 2,000,000 100 38.3 Print If the objective is for each household to bear their share of the tax burden equally, in your opinion, which of the following best achieves this objective and why? References Use a progressive tax to ensure that high-income households pay a higher percentage of income than low-income households. Impose a flat tax of 3.83 percent on each household ($20 million/$522.2 million). The tax bill for some low-income households would be as low as $574.50 and as high as $76,599 for some high-income households. Include a set of deductions to help minimize the tax bill for larger households. Everyone should pay the same amount. This means each household should pay ($20 million/10,000) = $2,000 per household.