Question: Name haven, bine Adown Analyzing Data - Understanding Progressive, Proportional, and Regressive Taxes Maria Reliance and Kareem Diligence live in the same city and work

 Name haven, bine Adown Analyzing Data - Understanding Progressive, Proportional, and

Regressive Taxes Maria Reliance and Kareem Diligence live in the same city

Name haven, bine Adown Analyzing Data - Understanding Progressive, Proportional, and Regressive Taxes Maria Reliance and Kareem Diligence live in the same city and work in the same industry. Both want to know if the taxes they paid last year were progressive, regressive, or proportional. Maria had a gross income last year of $25,000 and reported $18,000 as taxable income after deductions on her federal return. She also owns property that has an assessed value of $50,000 and spent $10,000 on goods subject to the state sales tax. Kareem had a gross income last year of $70,000 and reported $50,000 as taxable income after deductions on his federal return. He also owns property with an assessed value of $125,000 and spent $24,000 on goods subject to the state sales tax. Using the information below, determine the effect of various taxes. Each pays: Federal income tax (reported in the table below) State income tax (3 percent of gross income) State sales tax (5 percent on all goods bought, food excluded) Local property tax ($2 per $100 of assessed value) Maria Reliance Kareem Diligence Amount of tax Tax as a % of Amount of tax Tax as a % of (dollars) total income (dollars) total income Federal income tax $3,000 12% $11,450 State income tax 7500 State sales Tax Local property tax Total taxes paid Using information in the table, classify each tax as progressive, regressive, or proportional. 1. Federal income tax 2. State income tax 3. State sales tax 4. Local property tax

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