Suppose that the government has a wealth tax at the rate of 2% on the assessed value of wealth. Suppose that Wendy has invested all her wealth in a private corporation. Her wealth amounts to $4,000,000 in shares of this company. Suppose that this stock delivers a dividend income of $200,000 per year. Assume there is no inflation and that interest rates are 3%. Show your work. 1. Wendy's wealth tax liability is $ 2. Wendy's shares generate a net of tax income is $ per year. 3. Suppose a Conservative party were elected on a platform of eliminating the wealth tax. The value of Wendy's shares if the wealth tax was eliminated would be 4. The elimination of the wealth tax would reduce government tax revenue and create a budget deficit. Suppose that the country currently has no income tax, but the deficit has the government considering introducing a personal income tax that would replace the lost wealth tax revenue. A personal income tax rate of % would generate the same amount of revenue from Wendy as the old wealth tax