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Question

Identify and present all taxes you pay during the course of a typical year. Include taxes that are called fees (such fees are really taxes by another name). Some of the taxes you pay may have to be estimated (i.e., sales taxes). What is the percentage proportion of these taxes in relation to your income, and—with respect to your disposable income (that is, income after taxes)—what are the implications insofar as your spending behavior is concerned?

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EYS***772 2019-09-23 10:15:52
Thanks, solution was really helpful.

Solution Preview

Proportional tax: 

• It is a tax where the rate of taxation is fixed

• The amount of the tax is a fixed proportion (say 20%) of one's income

• It stays a fixed irrespective of how high or low the income is

 

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