Regressive Progressive Proportional THREE MAJOR TYPES OF TAXATION

REGRESSIVE TAX Here's how it works: Let's say the tax is $800 dollars per year. Under this Regressive Tax system, that's $800 for everyone, regardless of their income.

If you earn $8,000 a year working at the local movie theater, you get to watch all the latest flicks. $800 in taxes means you're paying 10% of your income in taxes. REGRESSIVE TAX

If you have a part-time job and earn $2,600 per year, an $800 tax bill means you're paying about 30% of your income in taxes. REGRESSIVE TAX

If your cousin with the business degree earns $80,000 a year at some big company in town, $800 translates to just 1% of her income REGRESSIVE TAX

PROPORTIONAL TAX Every citizen pays the same percentage of tax.

PROPORTIONAL TAX Your neighbor, your buddy and you all pay 10%.

The more you make, the higher percentage of your income goes to taxes. tax rate rises as your income rises. PROGRESSIVE TAX

Suppose you earn $1,000 a year delivering newspapers. Under a Progressive Tax, you might pay only 1% of that income in taxes. That's not a lot -- just $10.

PROGRESSIVE TAX But what about your buddy who landed a cool job at a bike shop and now makes $8,000 a year? Under the Progressive Tax system, he might have to pay 10% of his income in taxes. That's $800, nearly as much money as you made all last year!

PROGESSIVE TAX And then there's your neighbor. her salary is a whopping $80,000. Under a Progressive Tax system, she might pay 30% of her income in taxes -- that's $24,000, just in taxes!

USA Taxes In general, the U.S. income tax is progressive, at least with respect to individuals that earn wage income. TAX BRACKETS: –The range of taxable income taxed at a certain rate.

Tax Brackets

WHICH ARE THESE? Gasoline Tax “Sin” Tax Property Tax

Using our current tax brackets… What would the Federal Tax be for a person making $5000? $150,000 $1,000,000