1. 3/18/14 “Sales Tax in Wyoming” Valentina purchases a camera for $40, earrings for $5, and a $50 iPhone case for Gianny’s birthday present in Wyoming. 1.What is the total cost of all items (without sales tax)? 2.What is the sales tax percentage in this state? 3.How much will she pay in sales tax only? 4.What is the total cost with sales tax? On desk: Sales Tax Math problems # 1 – 10

2. Entrance Ticket 1.What is the total cost of all items? $40 + $50 + $5 = $95 2. What is the sales tax percentage in Wyoming? 4% =.04 3. How much will she pay in sales tax only? $95 x.04 = $3.80 4.What is the total cost with tax? $95 + $3.80 = $98.80

3. 3/18/14 Econ. Agenda 1.Review Financial Literacy Quest #2 2.Review Sales Tax HW problems 3.Income taxes (class notes) 4.Income taxes math problems (yay, Math!) HW: Income taxes math problems

4. Financial Literacy Quest #2

5. Sales Tax HW problems

6. 3/18/14Class notes – income taxes Earned income: Money that you worked to earn -wages: $$ per hour -salaries: $$ per year -tips: extra $$ for a provided service Unearned income: Money gained that you did not work for Interest: $ earned from savings + checking accounts Dividends: $ earned from stock market, investments, etc. Inheritance, lottery winnings, etc.

7. 3/18/14Class notes – Types of taxes 2.Income tax tax on your income, both earned & unearned % of your income Rates depend on level of income Examples: Income tax you have to pay at the end of the year (on wages, tips, lottery winnings, dividends, company profits, etc.) Who taxes you? always federal and state sometimes local Usage: federal & state welfare, roads, parks, prisons, etc.

8. 3/18/14Class notes – Types of taxes 3.Property tax tax on real estate building value & land value Examples: tax on houses, property (land), or buildings you own Who taxes you? local Usage: Main supporter of local education, govt., police/fire, roads, etc.

9. 3/18/14Class notes – income taxes Two ways to tax people: 1.Progressive taxes: The more you earn, the higher your tax rate (%) 2.Flat tax: Everyone pays the same tax rate (%) What is America’s tax system? PROGRESSIVE!

10. 2013 Federal Tax Brackets (for taxes due April 15, 2014) Tax rateSingle filers Married filing jointly Married filing separately Head of household 10%Up to $8,925Up to $17,850Up to $8,925Up to $12,750 15% $8,926 to $36,250 $17,851 to $72,500 $8,926 to $36,250 $12,751 to $48,600 25% $36,251 to $87,850 $72,501 to $146,400 $36,251 to $73,200 $48,601 to $125,450 28% $87,851 to $183,250 $146,401 to $223,050 $73,201 to $111,525 $125,451 to $203,150 33% $183,251 to $398,350 $223,051 to $398,350 $111,526 to $199,175 $203,151 to $398,350 35% $398,351 to $400,000 $398,351 to $450,000 $199,176 to $225,000 $398,351 to $425,000 39.6% $400,001 or more $450,001 or more $225,001 or more $425,001 or more

11. 3/18/14 Class Notes What are Rhode Island’s STATE tax brackets for 2013? Annual Taxable IncomeTax Rate $0 - $58,600 3.75% $58,601 - $133,250 4.75% $133,251 or above 5.99%

12. 3/18/14 How much would I pay in taxes if…? Complete “Income Tax” problems # 1 - 6