You are in charge of writing the tax law for a country that has five families. The country has a total taxable wage income this year of $250,000. In addition, households earned $25,000 in capital gains. The country's government needs to raise at least $50,000 for defense, schools, roads, and government salaries.

The following information is available for each of the five families:

Family 1: $10,000 income 3 children No investments/no capital gains Family

2: $25,000 income 0 children No investments/no capital gains

Family 3: $45,000 income 0 children No investments/no capital gains

Family 4: $70,000 income 1 child $5,000 additional income from capital gains

Family 5: $100,000 income 0 children $20,000 additional income from capital gains

Discuss the details of the tax law that you choose to enact and its effect on each of the five families.

Format: Part 1—a listing of your individual laws (no fancy law language needed; just a list describing exactly how you will tax your residents)

Part 2—a discussion about the reasoning behind why you chose your individual laws

Part 3—a calculation of how your laws affect each of the five families.

Answer rating: 100% (QA)

The objective of a sound taxation system should be to ensure an equitable tax burden on its citizens so that each citizen contributes according to his paying capacity Simultaneously a good and equitab... View the full answer