ACTIVITY: How Much Tax Would You Pay?
The assignment is to figure out what fraction of his income a hypothetical self employed person in the USA pays in taxes given a bunch of different taxes.
Different values are given as functions of other values. You need to calculate some intermediate values, and put only taxes in column 3 so you can add up that column.
Here are the numbers to plug into the spreadsheet:
- Yearly Income: 50,000
- Federal Income tax: 28%
- State Income Tax: 13%
- Social Security: 15%
- House Value is 6 times income.
- Property Tax is 2% of the house value.
- Taxable spending is 20% of income.
- The sales tax rate is 9%.
Calculate the following:
- Intermediate values as needed (like value of house and money spent at store)
- Total taxes paid.
- Percentage of Yearly Income spent on taxes (take fraction and multiply by 100).
- How much money left over after taxes each year.
- How much is left each month after taxes.
Next
1. Create a pie graph to show how your money is spent
2. Save all information and label it your initials including your middle name
3. Drag it to the excel 2 folder found in the shared file.
Hints: Computations can start with a left ( and end with a right ). * is multiply and / is divide. @sum(c3..c9) totals cells c3 through c9. @round(c12/12,0) rounds the result to a whole number. F1 key gives help.
Now change the Yearly Income value and see what happens. Advanced work: This spreadsheet would be better if the Federal and State income tax rates adjusted per your income, as in reality. Make Federal 10% above $10,000, 20% and $30,000 and 30% at $50,000. Make State 3% above $10,000, %6 at $30,000 and 13% at $50,000.