Question

Given the following tax structure, Taxpayer Salary Total Tax Mae $ 10,000 $ 600 Pedro $...

Given the following tax structure,

Taxpayer

Salary

Total Tax

Mae

$

10,000

$

600

Pedro

$

20,000

???

  

a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable with respect to the amount of tax paid?

b. This would result in what type of tax rate structure?


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Answer #1

To make the tax structure vertically equitable with respect to the amount of tax paid, Perdo must pay tax in more tax dollars

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