Career Name: _____emergency room nurse__________ Yearly Income: _______65,000________

Flat Tax

Some Americans are supporting switching to a flat income tax rate of 15%. How much would you
pay under this plan?

(90,000) X 15% (or .15) = 13,500

Calculator Tip: To multiply by a percentage, you can use your calculator in two ways. You can use
the percent symbol key or you can enter the percentage as a decimal. To change a percentage to a
decimal, move the decimal point two digit places to the left. Example: 20% becomes 0.20

Regressive Tax Plan

Mark “X” next to the row Proposed Regressive Calculate your tax. For example,
that matches your yearly Plan $10,000x40%=$4,000 in tax.
income.

x 40% on income up to 10,000

$25,000

x 30% on income 2,700

between $25,000 and
$34,000

x 25% on income 2,500

between $34,000 and
$44,000

x 20% on income 4,200

between $44,000 and
$80,000

x 10% on taxable income

over $80,000

TOTAL 19,400
Progressive Tax Plan

Mark “X” next to the row Proposed Progressive Calculate your tax. For example,
that matches your yearly Plan $10,000x10%=$1,000 in tax.
income.

x 10% on income up to 2000

$25,000

x 20% on income 1800

between $25,000 and
$34,000

x 25% on income 2500

between $34,000 and
$44,000

x 30% on income 6300

between $44,000 and
$80,000

x 40% on taxable income

over $80,000

TOTAL 12,600

Reflection

Reflection Questions Your Responses

Is federal income tax a direct or It’s an indirect tax because the money doesn’t go
indirect tax? Explain your response. directly to the government. It comes from another
group or person

What are the main differences Flat tax is the same for everybody, and a regressive
between the flat, regressive, and tax is the one that decreases with more money you
progressive tax plans? make. Progressive tax is when the axable tax
amount increases

Under which plan would you pay the Progressive tax system
most in taxes? Under which plan
would you pay the least in taxes?

Which tax system would benefit you The regressive tax system because the career i
the most? Explain your response chose which takes a lot of dedication and and i
and refer to your specific career. would like to keep as much money as possible

Do you think the plan that benefits It’s unfair to those in lower class, they are taking
you most is the most fair for more money from the less fortunate, and is going to
everyone? Explain your response. the rich,

Imagine you marry and your spouse It would not change my opinion, i will be able to
earns $50,000 per year. You will be make enough money to support my family
filing your taxes together. Does this
change your opinion of the proposed
tax plans? Explain your response.