Progressive Tax Calculation
(82 Students)
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).
Econ Ed -
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 .
Econ Ed -
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 .
Econ Ed -
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 .
