Progressive Tax System

Using the information found below, determine what percentage and how much each person pays under the current progressive income tax system. For this activity, assume these individuals are single and paying taxes in 2018.

Occupation

Salary

Percentage

Total Tax

Part time sales clerk

$4,500

10%

$450

Fast-food restaurant cashier

$15,000.00

15%

$2,250

Automotive technician

$38,000.00

25%

$9,500

Sales manager

$83,000.00

25%

$20,750

Surgeon

$200,000.00

33%

$66,000

CEO of a large corporation

$750,000.00

39.6%

$297,000

Regressive Tax System

Now imagine that the income tax was regressive, and the percentage that each person paid was reversed so that the richest people paid the least. Apply the percentages from the previous table in reverse order as follows:

Apply the CEO's tax rate to the sales clerk and vice versa

Apply the surgeon's tax rate to the cashier and vice versa

Apply the sales manager's tax rate to the automotive technician and vice versa

Occupation

Salary

Percentage

Total Tax

Part time sales clerk

$4,500

%

Fast-food restaurant cashier

$15,000.00

%

Automotive technician

$38,000.00

%

Sales manager

$83,000.00

%

Surgeon

$200,000.00

%

CEO of a large corporation

$750,000.00

%