(Solution) - Which of the following are based on an ability to pay -(2025 Original AI-Free Solution)
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Which of the following are based on an ability to pay? Explain.
a. Local County assesses property taxes at the rate of 1% of assessed value.
b. The university library lets all students, faculty, and staff members check out books free. Students who do not return books by the due date are fined $1 for each day the book is late. Staff members are fined 50 cents for each day a book is late.
Faculty members are not fined when they return books late.
c. The country of Lacyland assesses an income tax based on the following schedule:
Taxable Income Income Tax
$ -0- to $20,000 20% of taxable income
$20,001 to $60,000 $ 4,000 + 15% of taxable income in excess of $20,000
$ 60,001 and above $10,000 + 10% of taxable income in excess of $60,000
d. State Z imposes a 10-cent-per-gallon tax on gasoline but gives low-income taxpayers a tax credit for gasoline taxes paid.