1. FEDERAL INCOME TAX - Progressive TAXABLE INCOMEThe tax rate is: Income from $0 – 8,50010% Income from $8,501 – 34,50015% Income from $34,501 – 83,60025% Income from $83,601 – 174,40028% Income from $174,401 – 379,15033% Income above $379,15035%

2. Other Taxes We Pay 1. CAPITAL GAINS TAX is 15% Tax on investment income or profit from the sale of stocks, bonds, real estate 2. SALES TAX IN PA OF 6%. Groceries, most clothing, and footwear are usually EXEMPTED from sales tax TAXABLE food items include soft drinks, hot beverages, hot prepared foods, sandwiches and salad bar meals (FAST FOOD IS TAXABLE!!!) 3. STATE & LOCAL INCOME TAX (same % for everyone in that state or town) 4. PROPERTY TAXES (% of value)

3. ALTERNATIVE TAX PLANS Flat Tax - everyone pays the same tax rate, regardless of income (for example, 10%) Fair Tax – national sales tax on every item we purchase  Exemptions could be included for groceries, medical needs, clothing  This would function like state sales tax, but on a national level

4. Federal Income Tax Rates If taxable income is over-- But not over-- The tax is: of the amount over-- $0$8,50010%$0 $8,500$34,500$850.00 + 15%$8,500 $34,500$83,600$4,750.00 + 25%$34,500 $83,600$174,400$17,025.00 + 28%$83,600 $174,400$379,150$42,449.00 + 33%$174,400 $379,150$110,016.50 + 35%$379,150