Scenario 1: The year is 2026. Aldous Remington and Chyou Tan are running for Governor of Colorado. The hot-button issue this year is state tax reform. • Remington wants to maintain Colorado's current tax system in which a person is issued a flat tax of 4.55% on their taxable income. • Tan wants to instate a progressive tax modeled after the federal government's system according to the following tax brackets: Tan’s Proposed Tax Bracket Rate Taxable Income 2% Up to $12,000 4% $12,001 - $25,000 7% $25,001 – $80,000 12% $80,001 and over 1. Suppose that Phil, an average Coloradoan, makes $42,000 a year and, being single, will take a standard deduction of $12,550. a) How much would Phil pay in Colorado state taxes under Remington's system? Show the details of your calculation. b) How much would Phil pay in Colorado state taxes under Tan's system? Show the details of your calculation.
Scenario 1: The year is 2026. Aldous Remington and Chyou Tan are running for Governor of Colorado. The hot-button
issue this year is state tax reform.
• Remington wants to maintain Colorado's current tax system in which a person is issued a flat tax of 4.55% on
their taxable income.
• Tan wants to instate a progressive tax modeled after the federal government's system according to the
following tax brackets:
Tan’s Proposed Tax Bracket
Rate Taxable Income
2% Up to $12,000
4% $12,001 - $25,000
7% $25,001 – $80,000
12% $80,001 and over
1. Suppose that Phil, an average Coloradoan, makes $42,000 a year and, being single, will take a standard deduction
of $12,550.
a) How much would Phil pay in Colorado state taxes under Remington's system? Show the details of your
calculation.
b) How much would Phil pay in Colorado state taxes under Tan's system? Show the details of your calculation.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
