Make a list of services provided to you by your local, state or federal government? Don't say you don't know- think about it. What are some things you do not have to worry about providing for yourself because your town, Illinois, or the United States provides it?

All About Taxes

Tax Classifications Progressive Higher income = higher % of taxes Example: Federal Income Taxes Person A Net Income = $9,000 Federal Income Tax = 10% or $900 Person B Net Income = $50,000 Federal Income Tax = 25% or $12,500

Federal Income Tax Money Taxable Income Tax Rate $0 – $9,525 10% of taxable income $9,526 – $38,700 $952.50 plus 12% of the amount over $9,525 $38,701 – $82,500 $4,453.50 plus 22% of the amount over $38,700 $82,501 – $157,500 $14,089.50 plus 24% of the amount over $82,500 $157,501 – $200,000 $32,089.50 plus 32% of the amount over $157,500 $200,001 – $500,000 $45,689.50 plus 35% of the amount over $200,000 $500,001 or more $150,689.50 plus 37% of the amount over $500,000

Tax Classifications Sales Tax 10%, $50 Tshirt Regressive Everyone pays the same fixed dollar amount Example: Illinois State Income Tax & Sales Tax Lower % of income from those who make more Higher % of income from those who make less Sales Tax 10%, $50 Tshirt Person A Net Pay = $100/wk Sales Tax = $5 Spent 5% of weekly income Person B Net Pay = $1000/wk Sales Tax = $5 Spent 0.5% of weekly income

State Income Tax Differs by state 4.95%

Sales Tax Taxes added to the price of goods and services at the time of purchase

Excise Taxes Collected on the sale of specific goods and services to discourage use. Tobacco & Alcohol Gasoline Soda Tax (Cook County) *

Property Taxes Collected on owner property Large part goes to schools *

Other Taxes Estate Taxes Gift Taxes Hotel Tax Corporate Taxes Business License Taxes Customs, Duties, or Tariffs Luxury Taxes

State Tax Comparison Activity In groups, compare Illinois to three other states and rank them (1-4) with 1 being the state you'd MOST like to live in and 4 being the state you'd LEAST like to live in based on taxes only. Be prepared to share your results and specific reasoning with the class. Make sure all 4 states are in the same category (least tax-friendly)