You are the elected supreme ruler of your own country.You need to raise $100,000 in taxesforroad repairs,garbage removal, etc.,from thefollowingthreehouseholds of your country:

1.Mr.Ronald Blumpinvested inconstructioncompanystock20 years ago for $100,000,which is now worth $1,000,000.This year he received $75,000 in cash dividends fromhisstock. He spent all $75,000 on living expenses.He also sold half ofhisstock for $500,000 that he bought for $50,000.Hereinvested the $500,000 in a different company.Heis single.

2.Mrs.Ivanka Kushowns and operates asmallclothing storewithher husband,Jared.Thestorehad a profit(sales less all expenses)of $250,000.IvankaandJaredspent $25,000 on living expenses and saved the rest of their income.Theyalso donated $10,000 tocharity.

3.Mrs.Clinnonworks as asaleswoman.Sheearned a salary of $70,000.Shepaid $15,000 for training to keepcurrentof the latestnegotiating techniques and sales pitches.These seminars took place in the Bahamas.Sheis marriedto Billand hasonechild Chelsea,and spent $20,000 on living expenses.

Requirement:You have the chance to design your own tax system.You need to raise $100,000in totalfrom these threehouseholds.What will beeachperson orhousehold'staxbase?At what rate will you tax thetax base?Why?How much should each taxpayer pay?

TaxpayerTaxBaseTax RateTax Paid

1.RonaldBlump

2.Ivanka&Jared Kush

3.Mrs. Clinnon________

Total:$100,000