HS Humanities- Economics

Chapter 14.1 Taxes calculations

Determine with supporting evidence what type of taxation is being used in the
following scenarios:

1) Person X gets paid $ 500,000, and pays $ 60,000 in taxes, while person Y
gets paid $ 400,000, and pays a tax rate of 10%.

Calculations:

Type of tax: ___________________

2) Person X gets paid $ 500,000, and pays $ 60,000 in taxes, while person Y
gets paid $ 800,000, and pays a tax rate of 10%.

Calculations:

Type of tax: ___________________

3) Person X gets paid $ 500,000, and pays $ 50,000 in taxes, while person Y
gets paid $ 400,000, and pays a tax rate of 10%.

Calculations:

Type of tax: ___________________

4) Person X gets paid $ 500,000, and pays 5% in taxes, while person Y gets
paid $ 600,000, and pays a tax of $ 40,000.

Calculations:
 Type of tax: ___________________

5) Person X gets paid $ 500,000, and pays 3% in taxes, while person Y gets
paid $ 400,000, and pays tax $ 20,000.

Calculations: The more income , the less tax

Type of tax: __________________

6) Person X gets paid $ 500,000, and pays 5% in taxes, while person Y gets
paid $ 400,000, and pays tax $ 20,000.

Calculations:

Type of tax: ___________________

Use the following income taxation schedule to calculate how much does each
person pay in taxation in the following scenarios:

Income ($) Tax Rate (%)

$ 1 – 5,000 -

$ 5,001 – 20,000 5%

$ 20,001 – 100,000 10%

$ 100,001 – 500,000 15%

Above $ 500,001 20%

7) Ahmed gets paid $ 5,010

8) Farida gets paid $ 55,000

9) Xena gets paid $ 5,000,000

10) Nada gets paid $ 250,000

11) Karim gets paid $ 110,000