For each of the following three scenarios, identify and explain the tax structure that is described....
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For each of the following three scenarios, identify and explain the tax structure that is described. You must respond to all three scenarios. (6 points possible, 2 for each scenario) SCENARIO 1: Mary makes $45,000 a year working as a manager at the local Home Depot. Caleb makes $84,000 working as an accountant at a local firm. Both will pay $18,000 in taxes this year. What tax structure does this scenario represent? Explain your answer. SCENARIO 2: Kevin brings in $55,000 a year working in construction. Trey is a lawyer and makes $110,000 a year in salary. Both of them will pay 22% of their salary in income taxes. What tax structure does this represent? Explain your answer. SCENARIO 3: Martin will make $45,000 in salary this year as a middle school science teacher. Lori will bring in $65,000 in salary this year as a physical therapist. Martin will have to pay 20% of his salary in income taxes and Lori will have to pay 26% of her salary in income taxes. What tax structure does this represent? Explain your answer. For each of the following three scenarios, identify and explain the tax structure that is described. You must respond to all three scenarios. (6 points possible, 2 for each scenario) SCENARIO 1: Mary makes $45,000 a year working as a manager at the local Home Depot. Caleb makes $84,000 working as an accountant at a local firm. Both will pay $18,000 in taxes this year. What tax structure does this scenario represent? Explain your answer. SCENARIO 2: Kevin brings in $55,000 a year working in construction. Trey is a lawyer and makes $110,000 a year in salary. Both of them will pay 22% of their salary in income taxes. What tax structure does this represent? Explain your answer. SCENARIO 3: Martin will make $45,000 in salary this year as a middle school science teacher. Lori will bring in $65,000 in salary this year as a physical therapist. Martin will have to pay 20% of his salary in income taxes and Lori will have to pay 26% of her salary in income taxes. What tax structure does this represent? Explain your answer.
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Scenario 1 This scenario represents a proportional tax structure In a proportional tax system indivi... View the full answer
Related Book For
Principles Of Taxation For Business And Investment Planning 2018
ISBN: 9781259713729
21st Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
Posted Date:
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