Complete the following question in a Word document and post your answer in Moodle using the submission box.

AP $1-1$ Application of Qualitative Characteristics

In $2016,$ the federal government increased the maximum federal tax rate applicable to individu$-$

als from $29\%$ to $33\%.$

Required: Evaluate the increase of the maximum federal tax rate on the basis of the qualita$-$

tive characteristics of tax systems that are listed in your text. For your convenience, the list of

qualitative characteristics presented in the text is as follows:

Equity or fairness

Neutrality

Adequacy

Flexibility

Simplicity and ease of compliance

Certainty

Balance between sectors

International competitiveness