Given the Following Tax Structure,what Amount of Tax Would Need

question 63

Essay

Given the following tax structure,what amount of tax would need to be assessed on Carrie to make the tax horizontally equitable? What is the minimum tax that Simon should pay to make the tax structure vertically equitable based on Fantasia's tax rate? This would result in what type of tax rate structure?
 
$\begin{array} { | c | c | c | } \hline { \text { Texpayer } } &{ \text { Salary } } & \text { Total Tax } \\\hline \text { Fantasia } & 20,000 & 1,500 \\\hline \text { Simon } & 30,000 & 2,000 \\\hline \text { Carrie } & 20,000 & ? ? ? \\\hline\end{array}$  

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Definitions:

Decentralization

The delegation of decision-making authority throughout an organization by providing managers with the authority to make decisions relating to their area of responsibility.

Added Decision-Making Authority

Refers to the increase in power or responsibility given to an individual or group to make decisions affecting organizational activities or processes.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and retention.

Minimum Required Rate Of Return

The lowest acceptable rate of return on an investment, considering its risk and the opportunity cost of forgoing other investments.