John is trying to learn about the different types of taxes he pays. He asks you to help him figure this out. John tells you that he:

• Is a U.S. citizen
• Lives in a state which taxes income
• Lives in a state which charges a sales tax
• Lives in a state with property taxes
• Owns a home
• Receives $50,000 in W-2 income from his employer (no other income sources)

1. John is surprised to see how much of his money each year goes to taxes. He asks you what the highest federal income tax rate any American currently pays is. He also wonders how top tax rates have changed over time (hint: see Figure 4.1). What do you tell him?