Two new taxes have recently been introduced in Washington in 2021 and directly affect Washington residents...

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Two new taxes have recently been introduced in Washington in 2021 and directly affect Washington residents and workers: • The Capital Gains Tax: 7% additional tax on capital gains of more than $250,000 a year. This state tax is in addition to the Federal capital gains tax. • The Long-Term Care Tax: 0.58% additional payroll tax on wages to support long-term care expenses that are typically for the elderly. This is in addition to the Federal payroll taxes (aka FICA taxes) and as a payroll tax, there are no deductions or credits to reduce it. There is a loophole - individuals can avoid paying this tax if they had already purchased long-term care before the law started in Oct of 2021. 1. What type of tax system is each tax (flat, progressive, regressive) and why? 2. Which tax do you think is more ethical? Please give two reasons for why each tax is more ethical than the other (4 reasons in total). Two new taxes have recently been introduced in Washington in 2021 and directly affect Washington residents and workers: • The Capital Gains Tax: 7% additional tax on capital gains of more than $250,000 a year. This state tax is in addition to the Federal capital gains tax. • The Long-Term Care Tax: 0.58% additional payroll tax on wages to support long-term care expenses that are typically for the elderly. This is in addition to the Federal payroll taxes (aka FICA taxes) and as a payroll tax, there are no deductions or credits to reduce it. There is a loophole - individuals can avoid paying this tax if they had already purchased long-term care before the law started in Oct of 2021. 1. What type of tax system is each tax (flat, progressive, regressive) and why? 2. Which tax do you think is more ethical? Please give two reasons for why each tax is more ethical than the other (4 reasons in total).

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1 The capital gains tax is a progressive tax because it applies only to those individuals whose capi... View the full answer