1. Make a list of services provided to you by your local, state or federal government?
Don't say you don't know- think about it. What are some things you do not have to worry about providing for yourself because your town, Illinois, or the United States provides it?

2. All About Taxes

3. Tax Classifications Progressive Higher income = higher % of taxes
Example: Federal Income Taxes
Person A
Net Income = $9,000
Federal Income Tax = 10% or $900
Person B
Net Income = $50,000
Federal Income Tax = 25% or $12,500

4. Federal Income Tax Money
Taxable Income
Tax Rate
$0 – $9,525
10% of taxable income
$9,526 – $38,700
$ plus 12% of the amount over $9,525
$38,701 – $82,500
$4, plus 22% of the amount over $38,700
$82,501 – $157,500
$14, plus 24% of the amount over $82,500
$157,501 – $200,000
$32, plus 32% of the amount over $157,500
$200,001 – $500,000
$45, plus 35% of the amount over $200,000
$500,001 or more
$150, plus 37% of the amount over $500,000

5. Tax Classifications Sales Tax 10%, $50 Tshirt Regressive
Everyone pays the same fixed dollar amount
Example: Illinois State Income Tax & Sales Tax
Lower % of income from those who make more
Higher % of income from those who make less
Sales Tax 10%, $50 Tshirt
Person A
Net Pay = $100/wk
Sales Tax = $5
Spent 5% of weekly income
Person B
Net Pay = $1000/wk
Sales Tax = $5
Spent 0.5% of weekly income

6. State Income Tax Differs by state
4.95%

7. Sales Tax
Taxes added to the price of goods and services at the time of purchase

8. Excise Taxes
Collected on the sale of specific goods and services to discourage use.
Tobacco & Alcohol
Gasoline
Soda Tax (Cook County) *

9. Property Taxes Collected on owner property Large part goes to schools*

10. Other Taxes Estate Taxes Gift Taxes Hotel Tax Corporate Taxes
Business License Taxes
Customs, Duties, or Tariffs
Luxury Taxes

11. State Tax Comparison Activity
In groups, compare Illinois to three other states and rank them (1-4) with 1 being the state you'd MOST like to live in and 4 being the state you'd LEAST like to live in based on taxes only.
Be prepared to share your results and specific reasoning with the class.
Make sure all 4 states are in the same category (least tax-friendly)