Taxes and Insurance

Needed:

Cell phone with loud speaker phone function for Wednesday.

Types of Taxes

• Proportional tax - everyone pays same percentage of income (Medicare, 1.45%).

• Progressive tax - higher percentage of total income paid by people with higher incomes (income tax).

• Regressive tax - higher percentage of total income paid by people with lower incomes (sales tax).

Taxes Quiz

What type of tax is represented by the chart below?

• A) Progressive

• B) Proportional

• C) Regressive

• D) Excise

Ken makes $50,000 per year and Kirby makes $30,000 per year. Ken pays a higher average tax rate on his incomethan Kirby. This infers that taxes on

income are

• A. regressive.

• B. proportional.

• C. progressive.

• D. marginal.

Imagine that our government suddenly charges a new $1,000 tax on every citizen. What type

of tax would this be?• A) Progressive

• B) Proportional

• C) Regressive

• D) Excise

Which of the following is the best example of a regressive tax?

• A) Medicare

• B) sales tax

• C) income tax

• D) property tax

Which of the following is the best example of a proportional

tax?

• A) Medicare

• B) sales tax

• C) income tax

• D) property tax

Which of the following is the best example of a progressive

tax?

• A) Medicare

• B) sales tax

• C) income tax

• D) gas tax

Rich guy pays 10% of his income, and poor guy pays 20%

of his income. What type of tax is this?

• A) Progressive

• B) Proportional

• C) Regressive

The BEST example of a progressive tax in the United

States is

• A. the federal excise tax on gasoline

• B. the Social Security tax

• C. the federal personal income tax

• D. state sales taxes

Can I Afford It?

Video Clip

Insurance• Premium: regular payments for coverage.• Deductible: portion of claim not covered• Types: • Life• Health**for medical bills**• Disability**for loss of income from job**• Property/Homeowner’s• Car:

– Liability – Comprehensive

Insurance Game

Rules• Step 1:

– Decide what coverage to get.– You have $5,500 available to spend on

insurance premiums for the year.– You do not have to spend all (or any) of that

money on insurance.– Use the probabilities and claim amounts to

inform your decision.– Answer numbers 2 and 3 on the score sheet

after you’ve made your decisions.

Rules

• Let’s play the odds!• A random number generator will be used to determine if you

have an auto accident, health issue, job loss due to disability, etc.

• Say you have an auto accident– if you’re covered, you must pay the deductible. The insurance

company will take care of the rest.– if you don’t have coverage, you must pay for damages (there will

usually be a second roll for damages).

• Record answers on the score sheet as we go along.

1st Period

Chad Seth Danielle

Zack Michael Baggott

Kyle Kendall Matt Nicole Arron

Hillary Michael Brannen

Shannon Lacey Haley Virginia

Brandon

Teacher Desk/ Work Area

Erin Morgan Taylor Dillon

Alex

2nd Period

Tim Megan Justin Xavier Andrew

Paige Cyndilee Chris Charlee Ryan Stacey

Amanda Chelsea Brett Jessica Alison Courtney

Kylie

Teacher Desk/ Work Area

Forrest Lacey Daniel Emily Jordan Avery

Morgan Madison

4th Period

Dee Dee Moriah Maggie Jon Jade (Empty)

Steven Courtney H.

Kara Amber Bethany Drew Kevin

Harley JD Courtney

Nick Sonia David Melissa

Teacher Desk/ Work Area

Jordan E Kayla Jordan M Andre’ Mandie Lauren

Kayla Daylan Catherine Phillip Justin

Raven Ryne Kelsea

Insurance Clicker Quiz

1) What type of insurance should you get to cover medical expenses?

• A) Life

• B) Health

• C) Property

• D) Disability

2) What type of insurance should you get to cover your loss of

income in case of injury or illness?

• A) Life

• B) Health

• C) Unemployment

• D) Disability

3) Your insurance provider paid $2,600 of your hospital bill, but

you had to pay the other $300 of it. What is the word for the amount

you paid?

• A) Premium

• B) Deductible

• C) Liability

• D) Subsidy

4) You pay $12 a month for property insurance on your record collection. What is the word for

this payment?

• A) Premium

• B) Deductible

• C) Liability

• D) Subsidy

5) While delivering the mail, a postman gets struck in the arm by a passing car. An ambulance takes him to the hospital, and after x-rays and other tests are done, thedoctor states that no bones were broken and no permanent damage was done.

Which of the following types of insurance would be MOST beneficial for the postman as a result of this accident?

• A) Auto• B) Disability

• C) Health• D) Life

6) Carlton is injured while working at a retail store. Which type of insurance is

MOST LIKELY to provide benefits while he is temporarily out of work?

• A. life insurance

• B. disability insurance

• C. property insurance

• D. automobile insurance

7) Alicia owns a home in the suburbs. If a neighbor wrecks an automobile in Alicia's yard and

damages property, Alicia is protected from financial loss by

• A. the neighbor's automobile liability policy.

• B. the neighbor's property insurance policy.

• C. Alicia's disability insurance policy.

• D. Alicia's automobile liability policy.