Question 1:
Which kind of tax rate do you think the Government should adopt?
- Flat Tax Rate
- Progressive Tax Rate
Note: Before 2011, the property tax rate for owner-occupied homes was at a flat tax rate of 4%. Now, the property tax rate is a progressive one (first $6,000 @ 0%, next $59,000 @ 4% and exceeding $65,000 @ 6%); i.e. the tax rate varies depending on the annual value of the home. The individual income tax rate is also a progressive rate.
Question 2:
Most Government set their individual income tax rate lesser than 33%.
(Refer to Taxes Around the World.)
Can you suggest reasons why most Government do not set their individual income tax rate at 33% (the peak of the hump), as suggested in the video? Why do they set it to be lesser than 33%?
