A. Equity Impact of Sales Tax Policy (address and compare the scenarios) B. Equity Impact of...

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A. Equity Impact of Sales Tax Policy (address and compare the scenarios) B. Equity Impact of Income Tax Policy (address and compare the scenarios) C. State Revenue Impact of Scenario 2 for Sales Tax Policy and Income Tax Policy Requirements: Follow all instructions. File name must be Last Name- Tax Policy. Submit as Word document or RTF. Do not submit as PDF. Do not round until you get to the final answer, then round to 4 decimal places (if percentage or dollar, then you round to 2 decimal places-82.45% or $82.45 or 0.8245). This is an individual assignment-not a group project. HOUSEHOLD INFORMATION Low Income 2nd Middle Income 23000 40000 75000 106300 High Income 580000 Total Taxed Purchases (inc food) 19000 31000 50000 70000 300000 Food Purchases only 5000 6800 9500 11600 16500 Sales Tax Rate Paid 5.75% 5.75% 5.75% 5.75% 5.75% State Income Taxes Paid 514 1490.60 3496.10 5295.85 30808.60 Reminder: review definition of effective tax rate in notes. I. SALES TAX POLICY (appendix to memo] Scenario 1: What is the effective sales tax rate for each household (without food exemption)? Scenario 2: What is the effective sales tax rate with food exempted from the sales tax for each household? II. INCOME TAX POLICY [appendix to memo] Scenario 1: What is the income effective tax rate for each household? Scenario 2: What is the income effective tax rate for relevant households if the state adopts the Low Income Sales Tax Credit of $500 for household incomes less than $45,000- instead of exempting food from sales taxes? III. MEMO (600 words or less) Using professional memo format, write a memo to me that discusses the impact of the two policies. Use the following subheadings. The entire memo must be fewer than 700 words (no exceptions). A. Equity Impact of Sales Tax Policy (address and compare the scenarios) B. Equity Impact of Income Tax Policy (address and compare the scenarios) C. State Revenue Impact of Scenario 2 for Sales Tax Policy and Income Tax Policy Requirements: Follow all instructions. File name must be Last Name- Tax Policy. Submit as Word document or RTF. Do not submit as PDF. Do not round until you get to the final answer, then round to 4 decimal places (if percentage or dollar, then you round to 2 decimal places-82.45% or $82.45 or 0.8245). This is an individual assignment-not a group project. HOUSEHOLD INFORMATION Low Income 2nd Middle Income 23000 40000 75000 106300 High Income 580000 Total Taxed Purchases (inc food) 19000 31000 50000 70000 300000 Food Purchases only 5000 6800 9500 11600 16500 Sales Tax Rate Paid 5.75% 5.75% 5.75% 5.75% 5.75% State Income Taxes Paid 514 1490.60 3496.10 5295.85 30808.60 Reminder: review definition of effective tax rate in notes. I. SALES TAX POLICY (appendix to memo] Scenario 1: What is the effective sales tax rate for each household (without food exemption)? Scenario 2: What is the effective sales tax rate with food exempted from the sales tax for each household? II. INCOME TAX POLICY [appendix to memo] Scenario 1: What is the income effective tax rate for each household? Scenario 2: What is the income effective tax rate for relevant households if the state adopts the Low Income Sales Tax Credit of $500 for household incomes less than $45,000- instead of exempting food from sales taxes? III. MEMO (600 words or less) Using professional memo format, write a memo to me that discusses the impact of the two policies. Use the following subheadings. The entire memo must be fewer than 700 words (no exceptions).