Everyone pays federal or state income tax. In this assignment, you will research the types of income taxes you pay and how they are calculated. You do not need to provide personal financial information (i.e., your annual gross and adjusted income). The goal here is to gain an understanding of how income taxes are levied against your earnings at both the federal and state levels (if applicable). You will also discuss other types of taxes you pay besides the income tax.
Using the module readings, Argosy University online library resources, and the Internet, research the realm of taxes. Then, respond to the following questions:
- The federal income tax you pay is known as a progressive tax. What does that mean with respect to your income level? How does the system of marginal tax rates affect the amount of taxes you pay?
- Do you live in a state that has an income tax? Is this a progressive tax? What is the typical income tax rate for your state?
- Federal and state income taxes are normally deducted from your paycheck. What other kinds of taxes are also deducted? What are these for and how are they calculated?
- Do you pay property taxes? How are these determined on your home? Who is taxing your property?
- What is the sales tax in your community? Is it a combination state and local sales tax? How is it applied to the items you normally purchase?
- We often hear about the concept of a flat federal income tax rate. Explain why this would be a good idea.
- Who do you suppose would be opposed to establishing a flat federal income tax rate? Explain Write your initial response in a minimum of 200 words. Apply APA standards to citation of sources