Exercise 9

Carlos Graterol Exercise 9 1. ) A.)Huey 50,000 Assessed Tax is 1,750 Effective Rate is 1.75% 3.5% Income Dewey 75,000 Assessed Tax is 2,625 Effective Rate is 1.75% 2.63% income B.) Regressive because % went down with income rising C. Proportional because % stayed same as tax value increased. 2.) A) Huey 75,000 Assessed. Tax is 2,250 3.6% Income 1.5% Effective Rate Dewey 112,500 Assessed Tax is 3,375 1.35% Effective Rate 2.7% Income B.) Yes, They have reduced effective tax rate but total revenues from tax have gone up. 3.) Huey Assessed 50,000 Tax is 1,500 2.4% as % of Income 1% Effective rate Dewey Assessed 87,500 Tax is 2,625 2.1% Income rate 1.17% Effective Rate B) It is still proportional. C) It is more regressive then before but it still is a progressive tac 4.)A) Huey $375 over 3% income rate Annual Property tax would be $2062.50 Effective Rate is 1.38%

Property Tax /Income is 3.3% Dewey’s tax rate as % of income is 2.7% so he receives no rebate B.) Still Regressive C.) Still Regressive