1. Based on what you learned in the Jeremy2 assignment, explain how it could be that billionaires pay a lower effective tax rate than middle class people.

2. Why is the title of this assignment regressive, and how does it relate to taxes?

3. What is the opposite of regressive in the context of taxes? Explain

4. What are two other types of taxes, besides income taxes (i.e. Form 1040) that are regressive and why?

4a Other type a

4b Other type b

Jeremy 2.

From Jeremy1 assignment: Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremys employer withheld $11,000 of federal income taxes from Jeremys paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household and has $23,000 in itemized deductions.

Assume that in addition to the original facts ($106,000 of ordinary gross income), Jeremy sold Amazon shares that he bought for $6,000 on 1/1/18 for $10,000 on 12/31/19. You may use the book chapter 4, PowerPoints, or the IRS instructions to form 1040.