Which of the following are based on an ability to pay? Explain.
a. Local County assesses property taxes at the rate of 1% of assessed value.
b. The university library lets all students, faculty, and staff members check out books free. Students who do not retu/n books by the due date are fined $1 for each day the book is late. Staff" members arc fined 50 cents for each day a book is late. Faculty members are not fined when they return books late.
c. The country of Lacyland assesses an income tax based on the following schedule:
Taxable Income Income Tax
S -0- to $20,000............. 20% of taxable income
$20,001 to $60,000.......... $ 4,000 + 15% of taxable income in excess of $20,000
S60,001 and above........... $10,000 + 10% of taxable income in excess of $60,000
d. State Z imposes a 10-cent-per-gallon tax on gasoline but gives low-income taxpayers a tax credit for gasoline taxes paid.