1. Do Now “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” - Benjamin Franklin What point is Benjamin Franklin making? Why is he making this claim?

2. Types of Taxes Income tax: government taxes a portion of your earnings (not just salary, i.e. capital gains, etc.) Payroll tax: tax to pay for social security and Medicare (calculated from your salary) Excise tax: tax on luxury items Estate/gift tax: over $2MM and over $13K/year Tariff: Taxes on imports (foreign goods).

3. In groups of 4… List the pros and cons of each federal tax: Income Tax Payroll Tax Estate Tax/Gift Tax Excise Tax Tariffs

4. Progressive Tax A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. (Example: US Income tax) Regressive Tax A tax that takes a larger percentage from low- income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder. (source: Investopedia.com)

5. Federal Taxes RateSingle Filers 10%$0 to $8,925 15%$8,925 to $36,250 25%$36,250 to $87,850 28%$87,850 to $183,250 33%$183,250 to $398,350 35%$398,350 to $400,000 39.6%$400,000 and up

6. RateSingle Filers 4%$0 to $8000 4.5% plus $320$8000 to $11000 5.25% plus $455$11000 to $13000 5.90% plus $560$13000 to $20000 6.85% plus $973$20,000 to $200,000 7.85% plus $13,303$200,000 to $500,000 New York State Taxes

7. New York City Tax Rate RateSingle Filers 2.907%$0 to $12,000 3.534% + 348.84$12,000 to $25,000 3.591% + 1232.34$25,000 to $50,000 3.648% + 1824$50,000 to $500,000 3.876% + 19,380$500,000 and up

8. Social Security  6.2% on all income up to $113,700 Medicare  Tax rate is 1.45% (2.9% if self- employed Social Security Tax