Pub Administration Tax System Excel Spreadsheet

"g356 tax systems "For each of the panels , do the calculations and tell whether "the tax system are regressive in effect , proportional or "progress "share "effective "share "taxable "pretax "taxes "tax "post tax "of post tax "income "income "paid "rate "income "income "20000 "10 "3000 "15 "17000 "9 .444 "0 .15 "80000 "40 "7000 "8 .75 "73000 "40 .56 "0 .35 "100000 "50 "10000 "10 "90000 "50 "0 .5 "proportional "Y /N "N "progressive "Y /N "N "regressive in effect "Y /N "Y "Explain "It is regressive tax , because pepole with low proportion in total income (10 ) are paying 15

of total tax , whereas people with 40 of taxable income are paying very low tax rate (8 .75 ) and their total tax contribution is only 35 of total tax collected . Likewise , people with 50 tax rate are paying same proportion of their earning . So their is greater burden of tax on low income group , as compared to the higher income group "share "effective "post "share "taxable "pretax "taxes "tax "tax "of post tax "income "income "paid "rate "income "income "20000 "10 "2000 "10 "18000 "10 "80000 "40 "8000 "10 "72000 "40 "100000 "50 "10000 "10 "90000 "50 "proportional "Y /N "Y "progressive "Y /N "N "regressive in effect "Y /N "N "explain "It is a proportional tax , because the proportion of tax burden is same as the proportion of income "share "effective "post "share "taxable "pretax "taxes "tax "tax "of post tax "income "income "paid "rate "income "income "20000 "10 "1200 "6 "18800 "9 .526 "0 .12 "80000 "40 "8800 "11 "71200 "37 .63 "0 .88 "100000 "50 "0 "0 "100000 "52 .84 "0 "proportional "Y /N "N "progressive "Y /N "N "regressive in effect "Y /N "Y "explain assumed that blank in C44 and D44 means 0 " It is again regressive in nature , as low income group is paying higher than their own proportion of income , so their more burder on low income , high burden on middle to high income and no burder on highest income holders . This type of tax division makes it unfair and regressive...