Question 3: Your neighbor hears you are taking economics classes and that you just learned about filing tax returns. Your neighbor knows you are an excellent student and ask you to check one of their old tax returns from 2015 since they are afraid of a tax audit since they paid only $499 in taxes. They were a single taxpayer, who earned $80,000, but who had $3,050 in personal exemptions, and $4,750 in deductions, which left them with an actual taxable income of only $72,200. You review the 2015 IRS breakdown and see the following: Tax rate 10% 15% 20% 28% Single Filer Brackets up to $7,000 $7,001 - $28,400 $28,401 - $68,800 $ 68,801 or more a. Calculate their total tax payment. b. What is their average tax rate? c. What is their marginal tax rate? d. Do individuals file a 1099 or w2? What is a 1099 form? What is a W2? Explain the differences. f. What tax form do individuals file? e. Now that you reviewed the tax return and found it to be incorrect, they ask you about your general knowledge regarding taxation. During the current presidential rate, a popular local politician wants to impose a $7 tax on the sale of any kind of milk and that the politician ensured his constituents that they do not have to worry about the tax as it will be placed on the seller. Your friend is not sure if the politician is correct in his analysis and asks for your input given your knowledge of economic analysis. He wants you to consider the following questions: What is the outcome of this proposed tax? What is the tax incident distribution? What assumption did you make to determine the tax incident? Please provide them with a diagram to support your