Policy Proposal 1: Replace the existing system with a progressive tax system that would tax business and individuals, using these schedules: Business Tax Rates You Pay This Amount on the Base of the Bracket SRO SR960,000 SR2,220,000 SR6,060,000 SR10,860,000 Plus This Percentage on If your Taxable Income Is Up to 8,000,000 8,000,000-15,000,000 15,000,000-31,000,000 31,000,000-47,000,000 Over 47,000,000 the Excess over the Base 12% 18% 24% 30% 36% Personal Tax Rates You Pay This Amount on Plus This Percentage or the Base of the Bracket the Excess over the Base If your Taxable Income Is Up to 8,000 8,000-28,000 28,000-62,000 Over 62,000 SRO 5R480 SR2,480 SR3,920 10% 16% 25% Given these tax schedules, calculate the tax liabilities for Taxpayer Tax obligation Average Tax Rate Ferskt Fishmongers Company, which eans an income of SR35,000,000 Ferskt Fishmongers ajork Frida Ari The following three individual taxpayers: (3) Bjork, a beekeeper earning SR24,000 per year; (2) Frida, a cooper (barrel maker) earning SRS4,000 per year; (3) Ari, a banker earning SR96,000 per year Assume that Bjork owes the same tax liability under both the current tax syatem and the proposed (progressive) system. As an ecoromically rational taxpayer, why should he prefer the current systern? would be taxed at the rate of 1.2% under the progressive system, it mid not be sapet te sodor earned would be taxed at the highest tax rate C25%); under the current system, it would be the next sodor earned would be taxed at the rate of 10%; under the current system, would not be subject Because under the current system the next sodor earned any tax exempt from addtional taxes to any tax O Because under the progressive tax system the next O Because under the progressive tax system