Taxes
1. Marc travels to Jamaica. The plane ticket costs $1600
dollars. Taxi to the airport costs $100, and a whole set of new clothes and
sunglasses cost $350.
a) How much is the whole trip?
b) There' s 13% HST on everything. How much tax does Marc have to pay?
c) So what is the new total for his whole trip?
d) When Marc is in Jamaica, he buys a new leather jacket for
$500 with no tax. There is no sales tax in Jamaica. When Marc returns home, the
airport officials at the border ask him if he bought anything in Jamaica. He
declares that he bought the coat for $500. The airport officials ask for a 12%
tax payment on the coat. How much does Marc have to pay so he can leave the
airport.
2. Alice wants to buy a truck. The truck costs $30 000 in
Ontario.
a) At 13% tax, how much will she have to pay for the truck?
b) Alice and her husband decide to drive to the US and buy
the truck to save on tax. She drives to Vermont with her husband, buys the
truck for $30 000. In Vermont there is 5% sales tax. How much does Alice pay in
total for the truck in Vermont?
c) She and her husband drive back to Ontario separately. At
the border Alice is asked if she bought anything in the US. She says she bought
the truck, and Alice is asked to pay 11% tax before she can continue on her
journey. How much does Alice have to pay at the border?
d) Should she have bough the truck in Canada or Vermont?
3. Stephanie works at McDonalds. Her income tax rate is 9%.
a) She earns $95 a week. How much of her money gets sent to
the government?
b) So how much, after tax, is actually on her paycheque?
c) Stephanie's cousin, Amanda, earns $114 000 a week working
at Google. She pays 40% tax because she earns so much. How much does Amanda pay
in tax?
d) So how much, after tax, is on Amanda's paycheque each
week?
e) Amanda's boss, Morgan, earns $2 000 000 a week as a vice
president at Google. She needs to pay 70% in tax. Morgan thinks this is
outrageous because Stephanie, who serves him a greasy garbage burger, only pays
9%. Stephanie thinks it's pretty fair. How much money does Morgan pay in tax
every week?
4. Apple earns $12 402 000 every month. They need to pay 35% in corporate taxes.
4. Apple earns $12 402 000 every month. They need to pay 35% in corporate taxes.
a) How much money does Apple pay in taxes every month?
b) McGinty's Coffee makes $1200 dollars every month.
c) What should McGinty's pay in taxes? 10%?? 20%??
35%?? Why!
d) I think that McGinty's should pay ______ % in taxes. So
therefore, in total, they need to pay $_____ every month.
