Suppose you earn $100,000 this year (delivered in one check at the end of the year) You look at your paycheck and it shows your money is being taken out and going to the following places-

-social security tax (4.60 percent of gross income) - flat rate

-medicare tax (1.35 percent of gross income) - flat tax

-retirement (you chose to put away 6 percent for the future) - flat rate

-income tax with the following marginal tax schedule- progressive tax

how much money do you take home at the end of the day

\begin{tabular}{lc} Taxable Income & Tax rate \\ \hline$0$9,700 & 10% \\ $9,701$39,475 & 12 \\ $39,476$84,200 & 22 \\ $84,201160,725 & 24 \\ $160,726$204,100 & 32 \\ $204,101$510,300 & 35 \\ Over $510,300 & 37 \end{tabular}