Use the following tax structure to answer Part 1 and Part 2….
Use the following tax structure to answer Part 1 and Part 2. Taxpayer Taxable Income Total Tax Chandler $80,000 $25,000 Monica $60,000 $25,000 Phoebe $35,000 $25,000 Joey $35,000 ? Rachel $60,000 $25,000 Ross $80,000 $25,000 Rachel and Monica agree that a tax system should be fair in the sense that it should have vertical equity. However, while Rachel thinks that vertical equity should be assessed in terms of the tax dollars paid by taxpayers, Monica thinks it should be assessed based on the tax rate applied to taxpayers. Ignoring the potential amount of tax Joey pays in the tax structure above, who is likely to think the tax structure above is fair in terms of vertical equity? (4 points)