Types of Taxes

Progressive taxes take a larger percentage of income from high-income groups than from low-income groups. The tax rate increases as the taxable income increases.

This method is based on ability to pay.

It is considered the fairest means of taxation.

Our federal system of taxation is progressive. People who earn more are taxed at a higher percentage rate.

Tax brackets illustrate the amount a person is taxed based on his or her taxable income

What tax bracket are you in?

Regressive taxes are where everyone pays the same fixed amount, regardless of income level.

Because everyone pays the same amount, who ends up paying the most as a percentage of income?

State and local taxes are regressive (gas tax, tobacco, alcohol, and jewelry, perfume, or travel are examples of this tax).

Proportional (or flat) tax is where all income levels are taxed at the same percentage rate.

Proportional taxes have a regressive effect on taxpayer's total income. Proportional taxes take a larger portion of income from those in lower-income groups.

Sales tax and real estate taxes are examples of proportional taxes.

Property Taxes

Created By
Adell Simmons


Created with images by Tax Credits - "Wasting Money"

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