What is fair?
   How much money is deducted from your
    paycheck for Social Security & Medicare tax?
   7.45%
   How much is deduct...
   How much money is deducted from someone
    who makes $200,000 for Social Security &
    Medicare tax?
   7.45% of th...
   Social Security over $90,000 is a REGRESSIVE
    tax, because the poor pay at a higher
    percentage than the wealthy...
   What other regressive taxes can you name?
   How much income tax does someone who earns
    $5,000 pay?
   $0
   $10,000?
   About $500
   $25,000?
   About $...
   What progressive taxes can you name?
   Luxury tax (yachts, fur coats, jewelry)
   Cigarette tax
   Alcohol tax
   (Sin taxes)
   Excise tax (on cars)
  ...
   If you had to raise one tax, what would it be?
   If you could lower one tax, what would it be?
Regr Progr Prop
Regr Progr Prop
Regr Progr Prop
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Regr Progr Prop

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Regr Progr Prop

  1. 1. What is fair?
  2. 2.  How much money is deducted from your paycheck for Social Security & Medicare tax?  7.45%  How much is deducted from someone who makes $80,000?  7.45%  This is PROPORTIONAL.  Is it fair?
  3. 3.  How much money is deducted from someone who makes $200,000 for Social Security & Medicare tax?  7.45% of the first $90,000, 0% after that  Is it fair?  One argument is yes, because social security benefits don’t go up for that person, so why should they pay more.  Do you think this argument is from the Republicans or Democrats?
  4. 4.  Social Security over $90,000 is a REGRESSIVE tax, because the poor pay at a higher percentage than the wealthy.  Gasoline tax is another example: ◦ One person earns $5,000 a year and buys $50 gas per week ◦ Another person earns $50,000 a year and buys $50 of gas per week  They pay the same AMOUNT of tax, but the person who earns $5,000 pays a higher rate.
  5. 5.  What other regressive taxes can you name?
  6. 6.  How much income tax does someone who earns $5,000 pay?  $0  $10,000?  About $500  $25,000?  About $2800  $200,000?  About $75,000  This is called PROGRESSIVE – higher incomes pay higher rates.  Is this fair?
  7. 7.  What progressive taxes can you name?
  8. 8.  Luxury tax (yachts, fur coats, jewelry)  Cigarette tax  Alcohol tax  (Sin taxes)  Excise tax (on cars)  Sales tax on food & clothing  Inheritance tax  Lottery – a voluntary tax
  9. 9.  If you had to raise one tax, what would it be?  If you could lower one tax, what would it be?

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