Taxes and Insurance

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Taxes and Insurance
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Needed

• Cell phone with loud speaker phone function for
  Wednesday.

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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).

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Taxes Quiz
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What type of tax is represented by the chart
below?

• A) Progressive
• B) Proportional
• C) Regressive
• D) Excise

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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.

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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

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

• A) Medicare
• B) sales tax
• C) income tax
• D) property tax

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

• A) Medicare
• B) sales tax
• C) income tax
• D) property tax

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

• A) Medicare
• B) sales tax
• C) income tax
• D) gas tax

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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

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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

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Can I Afford It?

• Video Clip

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Insurance

• Premium regular payments for coverage.
• Deductible portion of claim not covered
• Types
• Life
• Healthfor medical bills
• Disabilityfor loss of income from job
• Property/Homeowners
• Car
• Liability
• Comprehensive

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Insurance Game
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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
  youve made your decisions.

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Rules

• Lets 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 youre covered, you must pay the deductible.
  The insurance company will take care of the rest.
• if you dont 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.

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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 Teacher Desk/ Work Area Erin Morgan Taylor Dillon
Teacher Desk/ Work Area Teacher Desk/ Work Area Alex
Teacher Desk/ Work Area Teacher Desk/ Work Area
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2nd Period
Tim Megan Justin Xavier Andrew
Paige Cyndilee Chris Charlee Ryan Stacey
Amanda Chelsea Brett Jessica Alison Courtney Kylie
Teacher Desk/ Work Area Teacher Desk/ Work Area Forrest Lacey Daniel Emily Jordan Avery
Teacher Desk/ Work Area Teacher Desk/ Work Area Morgan Madison
Teacher Desk/ Work Area Teacher Desk/ Work Area
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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 Teacher Desk/ Work Area Jordan E Kayla Jordan M Andre Mandie Lauren
Teacher Desk/ Work Area Teacher Desk/ Work Area Kayla Daylan Catherine Phillip Justin
Teacher Desk/ Work Area Teacher Desk/ Work Area Raven Ryne Kelsea
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Insurance Clicker Quiz
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1) What type of insurance should you get to cover
medical expenses?

• A) Life
• B) Health
• C) Property
• D) Disability

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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

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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

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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

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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

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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

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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.