Federal Taxes

Most federal tax dollars come from the income tax system which currently utilizes the progressive tax structure that we talked about previously. This means that those with higher incomes owe a greater percentage of taxes.

In addition to income tax, Social Security and Medicare are collected at the same time. In this topic we'll take a closer look at each of these.

Essential Question

• How do you decipher the components of your paycheck including all of the earnings, taxes and deductions?