Given the Following Tax Structure, What Is the Minimum Tax

question 82

Essay

Given the following tax structure, what is the minimum tax that would need to be assessed on Lizzy to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Lizzy to make the tax progressive with respect to effective tax rates?
$$\begin{array} { | l | r | r | r | } \hline { \text { Tuxpayer } } & \text { Salary } & { \text { Muni-Band Interest } } & { \text { Total Tax } } \\\hline \text { Mort } & 20,000 & 5,000 & 4,000 \\\hline \text { Lizzy } & 80,000 & 30,000 & ? ? ? \\\hline\end{array}$$

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Definitions:

Accommodation

A strategy where one party meets the needs of the other party at its own expense, often used to preserve future relations.

Win-lose strategy

A negotiation approach where one party's gain is perceived to directly correlate with the other party's loss, suggesting a competitive outlook.

Distributive strategies

Approaches used in negotiations that focus on dividing a fixed amount of resources, often leading to a win-lose outcome.

Tangible issues

Problems or matters that can be quantified or measured, often having a physical dimension or concrete implications.