axpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round ur final answer to nearest whole dollar amount.) inimum tax This would result in what type of tax rate structure? Tax rate structure

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter4: Managing Income Taxes
Section: Chapter Questions
Problem 1DTM
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Given the following tax structure,
Taxpayer Salary Total tax
$21,500 $1,032
$46,000
???
Mae
Pedro
a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round
your final answer to nearest whole dollar amount.)
Minimum tax
b. This would result in what type of tax rate structure?
Tax rate structure
Transcribed Image Text:Given the following tax structure, Taxpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure
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