The sheaf of papers accompanying the journal describes several potential revisions to the Rodosian personal and business tax code, including replacing the existing system with a progressive tax system, the assessment of different luxury and sin taxes, and/or modifications of the provisions of the current system. Two of the specific proposals include the following: Policy Proposal 1: Replace the existing system with a progressive tax system that would tax business and individuals, using these schedules: If your Taxable Income Is Up to 10,000,000 10,000,000-25,000,000 25,000,000-60,000,000 60,000,000-90,000,000 Over 90,000,000 Business Tax Rates You Pay This Amount on Plus This Percentage on the Base of the Bracket the Excess over the Base SRO SR800,00D 16% SR3,200, DDD 24% SR11,600,000 32% SR21,200,000 40% Personal Tax Rates You Pay This Amount on Plus This Percentage on the Base of the Bracket the Excess over the Base SRO 996 If your Taxable Income Is Up to 16,000 16,000-38,000 38,00D-75,000 Over 75,00D 20% SR1,440 SR5,840 SR16,940 30% 409 Given these tax schedules, calculate the tax liabilities for the following: (NOTE: Please round the percentage values to two decimal places.) Dekk Wheelwright Company, which eams an income of Taxpayer Tax Obligation Average Tax Rate SR65,000,000 Dekk Wheelwright SR13,200,000 20.31% Daggar SR1,840 10.22% The following three individual taxpayers: (1) Daggar, a farmer Birna SR7,040 eaming SR18,000 per year; (2) Birna, a teacher eaming 16.76% SR42,000 per year; (3) Kolli, a merchant eaming SR87,000 per Kolli SR21,740D 24.999% year Assume that Daggar 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? O Because under the current system the next sodoreamed 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 sodoreamed would be taxed at the rate of 10%; under the current system, it would not be subject to any tax. Because under the progressive tax system the next sodor eamed would be taxed at the highest tax rate (40%); under the current system, it would be exempt from additional taxes. Policy Proposal 2: Impose a 3% sales tax on the value of all goods sold on the island of Rodos, whether the goods are sold as intermediate or final goods. What effect will this tax have on Dekk Wheelwright and the Rodos's economy? Assuming that Dekk Wheelwright's goods and services exhibit inelastic demand, such that the tax can be passed on to the firm's customers, then the tax will decrease both the selling price of the firm's goods and its sales revenues. Assuming that Dekk Wheelwright's goods and services exhibit inelastic demand, such that the tax can be passed on to the firm's customers, then the tax will increase both the selling price of the firm's goods and its sales revenues. This tax will decrease the tax revenues received by the Treasury of Rodos