Part 1 (28 Points) Consider three neighbors in the same cul-de-sac of an affluent neighborhood in Nairobi, Kenya. One neighbor is a U.S. citizen who has never set foot in the United States. A second neighbor is a Kenyan citizen that left Kenya last year and now lives in the United States working as a computer analyst for IBM. The third neighbor is a Brazilian citizen who works for a diamond mining company in Kenya. She has never been to the United States but owns oil and mineral rights in Colorado that generate royalty income. 1. What is jurisdiction? 2. Compare and contrast whether and how the United States has jurisdiction over each of these three neighbors. 3. If your marginal tax rate exceeds your average tax rate, what is your tax rate structure? 4. Do tax rate structures relate to horizontal equity or vertical equity? 5. What tax policy standard relates to horizontal equity and vertical equity? 6. A taxpayer responds to a tax rate increase by working less. What type of effect" is driving the taxpayer's behavioral response to the tax rate increase? MacBook Air Part 1 (28 Points) Consider three neighbors in the same cul-de-sac of an affluent neighborhood in Nairobi, Kenya. One neighbor is a U.S. citizen who has never set foot in the United States. A second neighbor is a Kenyan citizen that left Kenya last year and now lives in the United States working as a computer analyst for IBM. The third neighbor is a Brazilian citizen who works for a diamond mining company in Kenya. She has never been to the United States but owns oil and mineral rights in Colorado that generate royalty income. 1. What is jurisdiction? 2. Compare and contrast whether and how the United States has jurisdiction over each of these three neighbors. 3. If your marginal tax rate exceeds your average tax rate, what is your tax rate structure? 4. Do tax rate structures relate to horizontal equity or vertical equity? 5. What tax policy standard relates to horizontal equity and vertical equity? 6. A taxpayer responds to a tax rate increase by working less. What type of effect" is driving the taxpayer's behavioral response to the tax rate increase? MacBook Air