Progression of Taxes! Directions: Everyone has to pay taxes, so it is good to figure it in your finances before you even get your first paycheck. Complete this class activity to see how different jobs are impacted by taxes . Part A: Find the Yearly income for each career Career Name: Car Mechanic Yearly Income: $52,650 Career Name: Railroad Foreman Yearly Income: $80,700 Career Name: Middle School Teacher Yearly Income: $33,158 Career Name: Therapist Yearly Income: $68,250 Part B: Figure out the flat tax on all incomes. You may use the following calculator: Flat Tax Calculator. Flat Tax (Proportional Tax): Some Americans are now in support for switching to a flat income tax rate of 15%. How much would you pay under this plan? (Mechanic Income) X 15% (or .15) = (Foreman Income) X 15% (or .15) = (Teacher Income) X 15% (or .15) = (Therapist Income) X 15% (or .15) = Part C: In the first column, put the job (Teacher, Mechanic, Foreman, and Therapist) next to the row that matches each income. For example, if the income is $35,000 then you would put the job title in the third row where the regressive tax plan is 259%. After you have found the proposed plan, calculate each tax. In the third row, please write how much you will pay in taxes and how much your net income will be. Regressive Tax Plan Mark the job title next to Proposed Regressive Plan Calculate your tax. For the row that matches your example, yearly income. $10,000x40%=$4,000 in tax. 40% on income up to $25,000 30% on income between $25,000 and $34,00025% on income between $34.000 and $44,000 20% on income between $44,000 and $80,000 10% on taxable income over $80,00 Part D: In the first column, put the job (Teacher, Mechanic, Foreman, and Therapist) next to the row that matches each income. For example, if the income is $35,000 then you would put the job in the third row where the progressive tax plan is 25%. After you have found the proposed plan, calculate each tax. In the third row, please write how much you will pay in taxes and how much your net income will be. Progressive Tax Plan Mark "X" next to the row Proposed Progressive Plan Calculate your tax. For that matches your yearly example, income. $10,000x10%=$1,000 in tax. 10% on income up to $25,000 20% on income between $25,000 and $34,000 25% on income between $34,000 and $44,000 30% on income between $44,000 and $80,000 40% on taxable income over $80.000 Part E: Answer the reflection questions below in complete sentences. Reflection Questions Your Responses Is federal income tax a direct or indirect tax? Explain your response. 2+ lines What are the main differences between the flat, regressive, and progressive tax plans? 3+ linesUnder which plan would the person who is paid the lowest income pay the most in taxes? Under which plan would they pay the least in taxes? 2+ lines (For the next three questions, pick one of the four jobs) Which tax system do you think would benefit you the most in the future? Explain your response. 3+ lines Do you think the plan that would benefit you most is the fairest for everyone? Explain your response. 3+ lines Imagine you marry and your spouse earns $50,000 per year. (This would mean you and your spouse would have a joint income) You will be filing your taxes together. Does this change your opinion of the proposed tax plans? (You are now making more money because you are filing together) Explain your response. 3+ lines