Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. consider the income tax schedule follows the struc

Consider the income tax schedule follows the structure below: Income Slab PIT...

70.2K

Verified Solution

Question

Accounting

Consider the income tax schedule follows the structure below:

Income Slab PIT Rate (%)
0 to 20000 0
20001 to 30000 10
30001 to 40000 20
Above then 40000 25

A. Calculate the marginal and average tax rate. Do you think that this tax structure is appropriate to ensure the equity? Explain your answer. B. Do you agree that Ramsey model of optimal taxation will work in this example? Explain your answer by using the diagram. C. If tax structure will be proportionate at 10%. Do you think that tax incidence would increase for the tax payers? Explain by using this example. D. Explain the condition of the regressive tax structure. Why the regressive tax structure is not ideal tax structure? Give your justification.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students