The Tale of Three Brothers

Say What!!! The Tale of Three Brothers analyzes three possible solutions for brothers
Tom, Rick, and Harry to install a new gate at the entrance road of their housing
community. After viewing the video, it appears that Harry was not happy, as he was
designated to pay the largest part of the $30,000 gate installation bill.

Harry comes to see you because he does not understand what his brother Tom meant when
he said that he followed the United States Progressive tax structure.

Create three separate scenarios where Harry can clearly see the impact of each tax
structure on each brother’s income. (The amounts have been changed from the amounts in
the video to simplify the example).

https://www.youtube.com/watch?v=S6HEH23W_bM

Regressive Tax

Income Percentage of Income Tax Amount Remaining Income

$25,000

$60,000

$110,000
$6,000

Progressive Tax

Income Percentage of Income Tax Amount Remaining Income

$25,000 15%

$60,000 $14,000

$110,000 31%
 Proportional Tax

Income Percentage of Income Tax Amount Remaining Income

$25,000

$60,000
15%
$110,000

As an independent tax expert, provide your analysis of each possible solution. Explain your
final position by answering the following questions in your conclusion. Write a one-page
reflective paper to answer the following questions below in the context of the tax
structures you calculated.

Questions your reflection should include are:

▪ In your opinion, which tax system is the fairest?

▪ How does each tax type affect the ability for individuals to pay for food and
housing?
▪ Which group is least satisfied in each scenario?
▪ Which group is most satisfied in each scenario?
▪ After comparing and contrasting each tax structure, which solution do you feel is
the best tax solution? Explain why.

https://www.youtube.com/watch?v=S6HEH23W_bM