Types of Taxes Chapter 11. Federal Income Taxes Social Security Taxes Medicare Taxes State Income Taxes Sales Tax Excise Tax Property Taxes Local Taxes

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Text of Types of Taxes Chapter 11. Federal Income Taxes Social Security Taxes Medicare Taxes State Income...

  • Slide 1
  • Types of Taxes Chapter 11
  • Slide 2
  • Federal Income Taxes Social Security Taxes Medicare Taxes State Income Taxes Sales Tax Excise Tax Property Taxes Local Taxes Federal, State & Local Taxes
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  • Types of Taxes Progressive Tax- As income => Average Tax Rate Example: U.S. Federal Income Tax Regressive Tax- As income => Average Tax Rate Example: Gasoline Tax, Bridge Tax Proportional Tax Regardless of income level => Average Tax Rate unchanged Example: Flat Income Tax, Corporate Taxes Excise Tax Flat rate per unit => paid at purchase Example: Gasoline ($0.50 per gallon), cigarettes (over $2 00 per pack) (both are also regressive taxes) Some taxes can be two types!
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  • Excise Taxes Plus $1.01 per pack Federal Tax!
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  • Tax Reading
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  • 2014 California State Income Tax Tax Bracket (Single)Marginal Tax Rate $0+1.00% $7,582+2.00% $17,976+4.00% $28,371+6.00% $39,384+8.00% $49,774+9.30% $254,250+10.30% $305,100+11.30% $508,500+12.30% 2013 - 2014
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  • 2013 Federal Tax Rate Brackets Tax RateSingle Married filing Jointly or Qualifying Widow(er) 10% Up to $8,925 Up to $17,850 15% $8,926 $36,250 $17,851 $72,500 25% $36,251 $87,850 $72,501 $146,400 28% $87,851 $183,250 $146,401 $223,050 33% $183,251 $398,350 $223,051 $398,350 35% $398,351 $400,000 $398,351 $450,000 39.6% $400,001 + $450,001 + Standard Deduction $6,100 $12,200 New top bracket Bush Tax cuts are now permanent
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  • http://www.paycheckcity.com/calculator/netpay/us/california/calculator.html 2 Wage Earners John earns $500,000 Mary earns $60,000 Federal Taxes Social Security Medicare California Tax Yearly Bring Home Pay Monthly Bring Home Pay Total Taxes Paid Overall Tax % Rate $151,026 $7,254 $9,995 $52,830 $277,922 $23,160 $222,078 44.0% $5,855 $2,520 $870 $1,617 $49,137 $4,094 $10,863 18.0%
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  • Who Pays Federal Income Taxes Top 1% of Taxpayers Pay 38% of all taxes Earn 20% of all income 1.4 million households $343,000 + Up Top 10% of Taxpayers Pay 70% of all income taxes Earn 46% of income Bottom 50% of Taxpayers Pay 3% of Income Taxes Earn 13% of Income Below $33,000 ($16/hour working full time)
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  • Death of Middle Class? http://www.pbs.org/newshour/bb/business/july- dec12/makingsense_10-16.htmlhttp://www.pbs.org/newshour/bb/business/july- dec12/makingsense_10-16.html
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  • Basic Income http://www.pbs.org/newshour/making-sense/why-americas-favorite-anarchist-thinks-most-american-workers-are-slaves/