Policy Proposal 1: Replace the existing system with a progressive tax system that would tax business and individuals, using thes schedules: Given these tax schedules, calculate the tax liabilities for: - Vinber Vintners Company, which earns an income of SR50,000,000 - The following three individual taxpayers: (1) Baldur, a beekeeper earning SR30,000 per year; (2) Lara, a cooper (barrel maker) earning SR50,000 per year; (3) Hinrik, a banker earning SR80,000 per year Note: Round your average tax rate answers to two decimal places. Assume that Baldur owes the same tax liability under both the current tax system and the proposed (progressive) system. As an economically rational taxpayer, why should he prefer the current system? Because under the progressive tax system the next sodor earned would be taxed at the highest tax rate (30\%); under the current system, it would be exempt from additional taxes. Because under the current system the next sodor earned would be taxed at the rate of 1.2%; under the progressive system, it would not be subject to any tax. Because under the progressive tax system the next sodor earned would be taxed at the rate of 10%; under the current system, it would not be subject to any tax. Policy Proposal 2: Impose a special tax on individual taxpayers who purchase or own a cart and wagon that costs more than SR12,000. (The average cost of a Rodosian cart or wagon is SR6,000.) What effect will this tax have on Rodosian businesses? This luxury tax effectively punishes individual consumers, as well as the manufacturers and sellers, of what King Valdimar or his advisors construe as excessively expensive carts and wagons. This progressive tax is designed to encourage the purchase and use of carts and wagons costing more than SR12,000 This example of an income tax is designed to punish rich Rodosians for earning sufficient income to afford expensive carts and wagons