# Progressive Tax Calculation

(*)(*)(*)(*)(*) ( 5.0, 3 students)
• Price per Classroom\$2.00
• Grade Levels 7, 8, 9, 10
• Topics Taxes
• Duration 30 Minutes
• Auto Scored? Yes
• Teacher Evaluation Needed? No

### Activity Description

In this worksheet, students will learn about the concept of progressive taxation by calculating the total tax to be paid by different individuals based on their taxable income. The activity will provide students with progressive tax brackets and guided questions to help them determine the total tax liability for each individual.

Additionally, students will calculate the tax percentage paid by each individual, gaining an understanding of how lower-income individuals pay a lower percentage of tax compared to higher-income individuals.

Activities:

• Introduction to Progressive Taxation: Students will receive an overview of the progressive tax system and its purpose in ensuring tax fairness.
• Tax Brackets Review: Students will be provided with the progressive tax brackets, showing the different tax rates for various income ranges.
• Tax Calculation: Students will be given the taxable incomes of four individuals. Guided questions will help students calculate the total tax to be paid by each individual.
• Effective Tax Rate Calculation: Students will calculate the effective tax rate (tax percentage) for each individual to understand how much of their income goes towards taxes.

This worksheet is designed to enhance students' financial literacy and understanding of the tax system, providing them with practical knowledge to navigate and comprehend progressive taxation.

### Teacher Tips

Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).

### National Standards in Personal Financial Education

Earning Income 8-5 -
Earning Income

Students will know that Social Security is a federal government program that taxes workers and employers to provide retirement, disability, and survivor income benefits for workers or their dependents .. Students will use this knowledge to 8-6a . Identify the different groups of people who qualify for Social Security benefits . 8-6b . Research the Social Security tax rate for someone who is self-employed vs . someone who is working for an employer . 8-6c . Given information on a worker’s income and today’s Social Security tax rates, calculate what the worker and the worker’s employer will pay in Social Security taxes . 8-6d . Investigate Social Security benefits for people of different income levels at their full retirement age .

Earning Income 8-6 -
Earning Income

Students will know that People are required to pay taxes on most types of income, including wages, salaries, commissions, tips, earnings on investments, and self-employment income .. Students will use this knowledge to 8-7a . Illustrate the relationship between income level and income tax paid . 8-7b . Describe how taxes are paid on tip income . 8-7c . Research the consequences of failing to pay income taxes .

Earning Income 12-7 -
Earning Income

Students will know that Earning Income 12-7. Students will use this knowledge to The type and amount of taxes people pay depend on their sources of income, amount of income, and amount and type of spending .

## More Activities You Might Like

### Tax Calculation: Filing Status And Standard Deduction

\$2.00 \$10.00/Classroom

### Tax Calculation: Filing Status And Standard Deduction

Students will learn about different tax rates for various filing statuses and the concept of standard deductions. They will calculate the standard deduction, taxable income, and tax to be paid for four individuals with different filing statuses, jobs, total incomes, and eligible deductions

### Taxes: Paystub Analysis

\$2.00 \$10.00/Classroom

### Taxes: Paystub Analysis

Students will analyze a sample pay stub to understand its various components, focusing on the different taxes paid by an employee. They will learn how taxes are automatically deducted from their salary and reflected in the pay stub.

FREE \$10.00

### Taxes: Government Spending Analysis

Students will classify a list of government programs and their 2023 expenditures into six categories: Education, Transportation, Health Insurance Program, Public Assistance, Defense, and Health. They will then calculate the total spending for each category and the overall total to understand the significance of government spending funded by taxes.

### Taxes: W-2 Form Analysis

\$2.00 \$10.00/Classroom