Idea 22of 23Builds onPublic and private services
More pay means a bigger share of tax
Should everyone pay the same income tax, or a share of their pay?
Today you'll discover
- how income tax changes with pay
- why sales tax feels different
Think firstSam and Alex pay income tax
Alex earns 3 times as much as Sam. How much income tax does Alex pay, compared with Sam?
Decide first, then press Next. Compare the shaded pieces, not only the dollars.
Two bars. Sam earns $1,000; income tax 15%, $150; take-home pay $850. Alex earns $3,000; income tax 25%, $750; take-home pay $2,250. A line underneath: Alex, 3 times the pay, but 5 times the tax. Round, made-up numbers.
See the whole ideathe big idea and the key word, in one place
The big idea
In Canada, income tax takes a bigger share from people who earn more.
Easy to get wrongSam's and Alex's numbers are made up. Real income tax is worked out in steps, and it depends on many things.
Why groceries have no HSTSales tax is the same 13% for everyone. Leaving it off basic groceries helps people who earn less.
Key word
- fair
- treating people in a way that makes sense for each of them; people can disagree about what is fair
About this modelRound, made-up numbers for learning; real amounts depend on many things.
Round, made-up numbers for learning; real amounts depend on many things.
Ready to use it?
- Compare the income tax two people pay.
- Explain why the same tax can weigh more on someone.