CHAPTER 14 TAXES AND GOVERNMENT SPENDING SECTION 1
![CHAPTER 14 --TAXES AND GOVERNMENT SPENDING • SECTION 1 --WHAT ARE TAXES • SECTION CHAPTER 14 --TAXES AND GOVERNMENT SPENDING • SECTION 1 --WHAT ARE TAXES • SECTION](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-1.jpg)
![THE AMERICAN TAX SYSTEM • Tax- a required payment to various levels of government THE AMERICAN TAX SYSTEM • Tax- a required payment to various levels of government](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-2.jpg)
![LIMITS ON THE POWER TO TAX • MUST BE FOR COMMON DEFENSE AND NOT LIMITS ON THE POWER TO TAX • MUST BE FOR COMMON DEFENSE AND NOT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-3.jpg)
![TAX STRUCTURE AND TAX BASE • TAX STRUCTURE--REFERS TO THE WAY THE TAX IS TAX STRUCTURE AND TAX BASE • TAX STRUCTURE--REFERS TO THE WAY THE TAX IS](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-4.jpg)
![TAX STRUCTURE--PROGRESSIVE TAX STRUCTURE • AS INCOME INCREASES, SO DOES THE PERCENT PAID IN TAX STRUCTURE--PROGRESSIVE TAX STRUCTURE • AS INCOME INCREASES, SO DOES THE PERCENT PAID IN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-5.jpg)
![TAX STRUCTURE-PROPORTIONAL TAXES • ALSO CALLED A “FLAT TAX” • IT APPLIES THE SAME TAX STRUCTURE-PROPORTIONAL TAXES • ALSO CALLED A “FLAT TAX” • IT APPLIES THE SAME](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-6.jpg)
![TAX STRUCTURE-REGRESSIVE TAX • PERCENT OF INCOME IN TAXES DECREASES AS INCOME OR TAX TAX STRUCTURE-REGRESSIVE TAX • PERCENT OF INCOME IN TAXES DECREASES AS INCOME OR TAX](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-7.jpg)
![WHO BEARS THE “BURDEN OF TAX” • “INCIDENCE OF TAX”. --IS WHO IS REALLY WHO BEARS THE “BURDEN OF TAX” • “INCIDENCE OF TAX”. --IS WHO IS REALLY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-8.jpg)
![WHAT ARE THE CHARACTERISTICS OF A GOOD TAX? • SIMPLICITY – EASY FOR TAXPAYERS WHAT ARE THE CHARACTERISTICS OF A GOOD TAX? • SIMPLICITY – EASY FOR TAXPAYERS](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-9.jpg)
![MEASURING THE FAIRNESS OF A TAX. • BENEFITS RECEIVED PRINCIPLE – PAY TAXES IN MEASURING THE FAIRNESS OF A TAX. • BENEFITS RECEIVED PRINCIPLE – PAY TAXES IN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-10.jpg)
![Section 2: FEDERAL TAXES • FEDERAL TAXES--SOURCES OF REVENUE • 5 CHIEFS SOURCES / Section 2: FEDERAL TAXES • FEDERAL TAXES--SOURCES OF REVENUE • 5 CHIEFS SOURCES /](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-11.jpg)
![FEDERAL INCOME TAX • PEOPLE FILE TAX RETURNS UNDER THE “PAY AS YOU EARN FEDERAL INCOME TAX • PEOPLE FILE TAX RETURNS UNDER THE “PAY AS YOU EARN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-12.jpg)
![FILING A TAX RETURN • FILL OUT W-4 FORM • LIST POSSIBLE EXEMPTIONS • FILING A TAX RETURN • FILL OUT W-4 FORM • LIST POSSIBLE EXEMPTIONS •](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-13.jpg)
![FICA TAX • http: //www. youtube. com/watch? v=UP 9 x y 2 e. Vj FICA TAX • http: //www. youtube. com/watch? v=UP 9 x y 2 e. Vj](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-14.jpg)
![F. I. C. A. TAX • SOCIAL SECURITY(OASDI) • Provides retirement fund for people F. I. C. A. TAX • SOCIAL SECURITY(OASDI) • Provides retirement fund for people](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-15.jpg)
![CORPORATE INCOME TAXES • TAX ON THE PROFIT OF A CORPORATION. • DIFFICULT TO CORPORATE INCOME TAXES • TAX ON THE PROFIT OF A CORPORATION. • DIFFICULT TO](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-16.jpg)
![OTHER FEDERAL TAXES! • EXCISE TAXES – TAX ON MANUFACTURE / SALE OF CERTAIN OTHER FEDERAL TAXES! • EXCISE TAXES – TAX ON MANUFACTURE / SALE OF CERTAIN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-17.jpg)
![TAXES ALSO INFLUENCE BEHAVIOR • TAX INCENTIVE. • A TAX THAT IS LEVIED THAT TAXES ALSO INFLUENCE BEHAVIOR • TAX INCENTIVE. • A TAX THAT IS LEVIED THAT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-18.jpg)
![SECTION 3 --FEDERAL SPENDING • FEDERAL SPENDING IS DIVIDED INTO 2 CATEGORIES: • MANDATORY SECTION 3 --FEDERAL SPENDING • FEDERAL SPENDING IS DIVIDED INTO 2 CATEGORIES: • MANDATORY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-19.jpg)
![MANDATORY SPENDING • INTEREST ON FEDERAL DEBT • ENTITLEMENT PROGRAMS • – SOCIAL SECURITY MANDATORY SPENDING • INTEREST ON FEDERAL DEBT • ENTITLEMENT PROGRAMS • – SOCIAL SECURITY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-20.jpg)
![INTERGOVERNMENTAL TRANSFERS OF REVENUE • MONEY COLLECTED BY FEDERAL GOVERNMENT RETURNED TO STATE GOVERNMENTS. INTERGOVERNMENTAL TRANSFERS OF REVENUE • MONEY COLLECTED BY FEDERAL GOVERNMENT RETURNED TO STATE GOVERNMENTS.](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-21.jpg)
![DISCRETIONARY SPENDING • SPENDING THAT VARIES ACCORDING TO NEEDS OR SITUATIONS • LARGEST DISCRETIONARY DISCRETIONARY SPENDING • SPENDING THAT VARIES ACCORDING TO NEEDS OR SITUATIONS • LARGEST DISCRETIONARY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-22.jpg)
![Sect. 4 STATE AND LOCAL TAXES • States collect over $500 bilion on taxes Sect. 4 STATE AND LOCAL TAXES • States collect over $500 bilion on taxes](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-23.jpg)
![OTHER STATE TAXES • SALES TAX & EXCISE TAX--19% • 2. 9% to 7. OTHER STATE TAXES • SALES TAX & EXCISE TAX--19% • 2. 9% to 7.](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-24.jpg)
![OTHER STATE TAXES--16% • • • LICENSING FEES TRANSFER FEES STOCK VALUE FEE SEVERANCE OTHER STATE TAXES--16% • • • LICENSING FEES TRANSFER FEES STOCK VALUE FEE SEVERANCE](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-25.jpg)
![LIMITATIONS ON STATE TAXES • CANNOT TAX FEDERAL PROPERTY • CANNOT TAX INTERSTATE COMMERCE LIMITATIONS ON STATE TAXES • CANNOT TAX FEDERAL PROPERTY • CANNOT TAX INTERSTATE COMMERCE](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-26.jpg)
![STATE SPENDING • STATES HAVE 2 CATEGORIES OF SPENDING: • OPERATING BUDGET--DAY TO DAY STATE SPENDING • STATES HAVE 2 CATEGORIES OF SPENDING: • OPERATING BUDGET--DAY TO DAY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-27.jpg)
![WHERE ARE STATE TAXES SPENT? • EDUCATION • FUNDING OF STATE UNIVESITIES • EVERY WHERE ARE STATE TAXES SPENT? • EDUCATION • FUNDING OF STATE UNIVESITIES • EVERY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-28.jpg)
![WHERE ARE STATE TAXES SPENT? (Continued) • PUBLIC WELFARE – – HOSPITALS --SOME UNEMPLOYMENT WHERE ARE STATE TAXES SPENT? (Continued) • PUBLIC WELFARE – – HOSPITALS --SOME UNEMPLOYMENT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-29.jpg)
![LOCAL GOVERNMENT FORMS OF REVENUE • 87, 000 LOCAL GOVERNMNET UNITS • COLLECT ALMOST LOCAL GOVERNMENT FORMS OF REVENUE • 87, 000 LOCAL GOVERNMNET UNITS • COLLECT ALMOST](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-30.jpg)
![PROPERTY TAXES • TAX ON VALUE OF ASSESSED PROPERTY. • REAL PROPERTY--TAX ON REAL PROPERTY TAXES • TAX ON VALUE OF ASSESSED PROPERTY. • REAL PROPERTY--TAX ON REAL](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-31.jpg)
![OTHER TAXES INCLUDE: • • HOTEL / MOTEL TAXES OCCUPATIONAL TAXES(LIKE INCOME) EXCISE TAXES OTHER TAXES INCLUDE: • • HOTEL / MOTEL TAXES OCCUPATIONAL TAXES(LIKE INCOME) EXCISE TAXES](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-32.jpg)
![LOCAL SPENDING • LARGEST CATEGORIES OF SPENDING ARE: – 1) EDUCATION 40% – 2) LOCAL SPENDING • LARGEST CATEGORIES OF SPENDING ARE: – 1) EDUCATION 40% – 2)](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-33.jpg)
- Slides: 33
![CHAPTER 14 TAXES AND GOVERNMENT SPENDING SECTION 1 WHAT ARE TAXES SECTION CHAPTER 14 --TAXES AND GOVERNMENT SPENDING • SECTION 1 --WHAT ARE TAXES • SECTION](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-1.jpg)
CHAPTER 14 --TAXES AND GOVERNMENT SPENDING • SECTION 1 --WHAT ARE TAXES • SECTION 2 --FEDERAL TAXES • SECTION 3 --FEDERAL SPENDING • SECTION 4 --STATE AND LOCAL TAXES AND SPENDING
![THE AMERICAN TAX SYSTEM Tax a required payment to various levels of government THE AMERICAN TAX SYSTEM • Tax- a required payment to various levels of government](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-2.jpg)
THE AMERICAN TAX SYSTEM • Tax- a required payment to various levels of government • Authority to levy taxes--given to federal, state and local government by the U. S. Constitution. – Article I Section 8 of U. S. Constitution – 16 th amendment--Federal Income Tax • America is a “middle class” tax system. – Designed to draw largest amount from more populated middle class! • Creates “revenue” for U. S. Government. – Revenue used to fund government programs and services.
![LIMITS ON THE POWER TO TAX MUST BE FOR COMMON DEFENSE AND NOT LIMITS ON THE POWER TO TAX • MUST BE FOR COMMON DEFENSE AND NOT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-3.jpg)
LIMITS ON THE POWER TO TAX • MUST BE FOR COMMON DEFENSE AND NOT FOR GENERAL INTERESTS • FEDERAL TAXES MUST BE THE SAME IN EVERY STATE • NO TAXES ON CHURCH SERVICES • NO TAXES ON EXPORTS
![TAX STRUCTURE AND TAX BASE TAX STRUCTUREREFERS TO THE WAY THE TAX IS TAX STRUCTURE AND TAX BASE • TAX STRUCTURE--REFERS TO THE WAY THE TAX IS](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-4.jpg)
TAX STRUCTURE AND TAX BASE • TAX STRUCTURE--REFERS TO THE WAY THE TAX IS ASSESSED AND COLLECTED. • TAX BASE--THAT WHICH IS SUBJECT TO TAX. • INCOME TAX--PEOPLE’S EARNINGS • CORPORATE TAX--COMPANY PROFITS • PROPERTY TAX--VALUE OF OWNED LAND OR PROPERTY • SALES TAX--VALUE OF A PRODUCT SOLD
![TAX STRUCTUREPROGRESSIVE TAX STRUCTURE AS INCOME INCREASES SO DOES THE PERCENT PAID IN TAX STRUCTURE--PROGRESSIVE TAX STRUCTURE • AS INCOME INCREASES, SO DOES THE PERCENT PAID IN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-5.jpg)
TAX STRUCTURE--PROGRESSIVE TAX STRUCTURE • AS INCOME INCREASES, SO DOES THE PERCENT PAID IN TAXES. • FEDERAL INCOME TAX STRUCTURE IS A PROGRESSIVE TAX
![TAX STRUCTUREPROPORTIONAL TAXES ALSO CALLED A FLAT TAX IT APPLIES THE SAME TAX STRUCTURE-PROPORTIONAL TAXES • ALSO CALLED A “FLAT TAX” • IT APPLIES THE SAME](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-6.jpg)
TAX STRUCTURE-PROPORTIONAL TAXES • ALSO CALLED A “FLAT TAX” • IT APPLIES THE SAME PROPORTION OR PERCENT ON ALL DESPITE THE VALUES OR SIZE OF THE TAX BASE. • MANY STATE TAXES ARE PROPORTIONAL.
![TAX STRUCTUREREGRESSIVE TAX PERCENT OF INCOME IN TAXES DECREASES AS INCOME OR TAX TAX STRUCTURE-REGRESSIVE TAX • PERCENT OF INCOME IN TAXES DECREASES AS INCOME OR TAX](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-7.jpg)
TAX STRUCTURE-REGRESSIVE TAX • PERCENT OF INCOME IN TAXES DECREASES AS INCOME OR TAX BASE INCREASES. • EXAMPLE--SALES TAX • $35, 000 YEARLY INCOME PAYS 5% SALES TAX ON $250 OF GROCERIES X 12 MONTHS-$150 • $35 O, 000 YEARLY INCOME PAYS 5% SALES TAX ON $250 OF GROCERIES X 12 MONTHS-$150 • http: //www. youtube. com/watch? v=Os. Gd 6 FWn. Y_0 &feature=related
![WHO BEARS THE BURDEN OF TAX INCIDENCE OF TAX IS WHO IS REALLY WHO BEARS THE “BURDEN OF TAX” • “INCIDENCE OF TAX”. --IS WHO IS REALLY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-8.jpg)
WHO BEARS THE “BURDEN OF TAX” • “INCIDENCE OF TAX”. --IS WHO IS REALLY ASSIGNED THE PAYMENT OF TAX. • PRODUCERS LOOK TO “PASS ON” THE BURDEN OF A TAX RATE. • INELASTIC DEMAND PRODUCTS-- THE BURDEN OF TAX CAN BE SHIFTED TO THE CONSUMER. • http: //www. youtube. com/watch? v=zjo. Nnxsfi b. U
![WHAT ARE THE CHARACTERISTICS OF A GOOD TAX SIMPLICITY EASY FOR TAXPAYERS WHAT ARE THE CHARACTERISTICS OF A GOOD TAX? • SIMPLICITY – EASY FOR TAXPAYERS](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-9.jpg)
WHAT ARE THE CHARACTERISTICS OF A GOOD TAX? • SIMPLICITY – EASY FOR TAXPAYERS TO UNDERSTAND, FILE AND PAY. • EFFICIENCY – EASY TO ADMINISTER AND COLLECT BY GOVERNMENT • CERTAINTY – CLEAR WHEN THE TAX IS DUE, HOW MUCH IS DUE, AND HOW TO PAY THE TAX • EQUITY – FAIR SO THAT THE “BURDEN” IS NOT TOO MUCH OR TOO LITTLE – APPLIED EQUALLY TO ALL PEOPLE!
![MEASURING THE FAIRNESS OF A TAX BENEFITS RECEIVED PRINCIPLE PAY TAXES IN MEASURING THE FAIRNESS OF A TAX. • BENEFITS RECEIVED PRINCIPLE – PAY TAXES IN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-10.jpg)
MEASURING THE FAIRNESS OF A TAX. • BENEFITS RECEIVED PRINCIPLE – PAY TAXES IN PROPORTION TO BENEFITS RECEIVED FROM THE GOVERNMENT – Example--People who drive a lot on government roads pay more in gas tax. • ABILITY TO PAY PRINCIPLE – Pay more in tax based on your wealth status – Basis of the Progressive tax.
![Section 2 FEDERAL TAXES FEDERAL TAXESSOURCES OF REVENUE 5 CHIEFS SOURCES Section 2: FEDERAL TAXES • FEDERAL TAXES--SOURCES OF REVENUE • 5 CHIEFS SOURCES /](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-11.jpg)
Section 2: FEDERAL TAXES • FEDERAL TAXES--SOURCES OF REVENUE • 5 CHIEFS SOURCES / TAXES • 1) FEDERAL INCOME TAXES--39 -43% • 2) FICA--FEDERAL INSURANCE CONTRIBUTORY ACT--32% • SOCIAL SECURITY, MEDICARE, UNEMPLOYMENT • • 3) CORPORATE INCOME TAX--10 -13% 4) BORROWING FOR FEDERAL DEFICIT-9% • 5) MISCELLANEOUS TAXES--7% • CUSTOMS DUTIES, EXCISE TAX, GIFT& INHERITANCE TAX
![FEDERAL INCOME TAX PEOPLE FILE TAX RETURNS UNDER THE PAY AS YOU EARN FEDERAL INCOME TAX • PEOPLE FILE TAX RETURNS UNDER THE “PAY AS YOU EARN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-12.jpg)
FEDERAL INCOME TAX • PEOPLE FILE TAX RETURNS UNDER THE “PAY AS YOU EARN SYSTEM” • MAKES IT EASIER THAN PAYING A LUMP SUM. • GOVERNMENT HAS MONTHLY FINANCIAL NEEDS • TAX RETURNS FILED BY APRIL 15 • PROGRESSIVE TAX WITH 6 BRACKETS • TAX SYSTEM IS A COOPERATIVE EFFORT BETWEEN EMPLOYER AND EMPLOYEE
![FILING A TAX RETURN FILL OUT W4 FORM LIST POSSIBLE EXEMPTIONS FILING A TAX RETURN • FILL OUT W-4 FORM • LIST POSSIBLE EXEMPTIONS •](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-13.jpg)
FILING A TAX RETURN • FILL OUT W-4 FORM • LIST POSSIBLE EXEMPTIONS • HAVE EMPLOYER “WITHHOLD” THE CORRECT AMOUNT FROM MONTHLY PAY BASED ON EXEMPTIONS AND SALARY. • RECEIVE W-2 STATEMENT • LIST PERSONAL EXEMPTIONS AND POSSIBLE DEDUCTIONS • (TOTAL INCOME)EXEMPTIONS AND DEDUCTIONS = TAXABLE INCOME • TAX CREDITS-AMOUNT YOU CAN SUBTRACT FROM YOUR TAXABLE INCOME
![FICA TAX http www youtube comwatch vUP 9 x y 2 e Vj FICA TAX • http: //www. youtube. com/watch? v=UP 9 x y 2 e. Vj](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-14.jpg)
FICA TAX • http: //www. youtube. com/watch? v=UP 9 x y 2 e. Vj 7 s
![F I C A TAX SOCIAL SECURITYOASDI Provides retirement fund for people F. I. C. A. TAX • SOCIAL SECURITY(OASDI) • Provides retirement fund for people](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-15.jpg)
F. I. C. A. TAX • SOCIAL SECURITY(OASDI) • Provides retirement fund for people who reach a specific age. • Provides benefits for surviving members and to those with a disability. • MEDICARE • A Federally funded health care program for those over the age of 65. • UNEMPLOYMENT • Paid by employers and funded by state and federal government. • Provides an income for workers who lose their jobs through no fault of their own. Specific rules apply. • TAX STRUCTURE BEGINS AS PROGRESSIVE TILL A CERTAIN AMOUNT, THEN TURNS REGRESSIVE
![CORPORATE INCOME TAXES TAX ON THE PROFIT OF A CORPORATION DIFFICULT TO CORPORATE INCOME TAXES • TAX ON THE PROFIT OF A CORPORATION. • DIFFICULT TO](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-16.jpg)
CORPORATE INCOME TAXES • TAX ON THE PROFIT OF A CORPORATION. • DIFFICULT TO CALCULATE BECAUSE CORPORATIONS CAN HAVE MANY DEDUCTIONS AND “LOOPHOLES”. • LOOPHOLES ARE WAYS TO AVOID PAYING CERTAIN AMOUNTS OR TYPES OF TAXES. • PROGRESSIVE TAX • RATES BEGIN AT 15%…. RISE TO 35 -39%
![OTHER FEDERAL TAXES EXCISE TAXES TAX ON MANUFACTURE SALE OF CERTAIN OTHER FEDERAL TAXES! • EXCISE TAXES – TAX ON MANUFACTURE / SALE OF CERTAIN](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-17.jpg)
OTHER FEDERAL TAXES! • EXCISE TAXES – TAX ON MANUFACTURE / SALE OF CERTAIN DOMESTIC PRODUCTS. (ALCOHOLIC BEVERAGES, TOBACCO, AUTOS, GAS, ETC. ) • ESTATE TAX – TAX ON PROPERTY / ASSETS OF PERSON WHO HAS DIED. – LEVIES BEFORE HEIRS RECEIVE THEIR SHARE – PROGRESSIVE TAX-STARTS @ $2 MILLION • GIFT TAXES – TAX ON MONEY PROPERTY ONE LIVING PERSON GIVES ANOTHER. – STARTS AT $12000 • IMPORT TAXES – LEVIES TO PROTECT DOMESTIC PRODUCERS – CALLED “TARIFFS” OR CUSTOM “DUTIES”
![TAXES ALSO INFLUENCE BEHAVIOR TAX INCENTIVE A TAX THAT IS LEVIED THAT TAXES ALSO INFLUENCE BEHAVIOR • TAX INCENTIVE. • A TAX THAT IS LEVIED THAT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-18.jpg)
TAXES ALSO INFLUENCE BEHAVIOR • TAX INCENTIVE. • A TAX THAT IS LEVIED THAT ALSO ENCOURAGES OR DISCOURAGES BEHAVIOR OR PURCHASING. • SOME PRODUCTS ARE IDENTIFIED AS OR WITH “SIN TAX”. • EXAMPLES OF SIN TAX PRODUCTS ARE CIGARETTES, ALCOHOLIC BEVERAGES, AND EVEN GASOLINE.
![SECTION 3 FEDERAL SPENDING FEDERAL SPENDING IS DIVIDED INTO 2 CATEGORIES MANDATORY SECTION 3 --FEDERAL SPENDING • FEDERAL SPENDING IS DIVIDED INTO 2 CATEGORIES: • MANDATORY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-19.jpg)
SECTION 3 --FEDERAL SPENDING • FEDERAL SPENDING IS DIVIDED INTO 2 CATEGORIES: • MANDATORY SPENDING--MONEY THAT CONGRESS MUST, BY LAW, SPEND ON PROGRAMS OR AREAS! • DISCRETIONARY SPENDING--IS AREAS OF SPENDING THAT LAWMAKERS CAN VARY HOW MUCH THEY SPEND OR IF THEY SPEND ANY AT ALL!
![MANDATORY SPENDING INTEREST ON FEDERAL DEBT ENTITLEMENT PROGRAMS SOCIAL SECURITY MANDATORY SPENDING • INTEREST ON FEDERAL DEBT • ENTITLEMENT PROGRAMS • – SOCIAL SECURITY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-20.jpg)
MANDATORY SPENDING • INTEREST ON FEDERAL DEBT • ENTITLEMENT PROGRAMS • – SOCIAL SECURITY • RETIREMENT FUND • RATIO OF PEOPLE PAYING TO COLLECTING IS CHANGING FROM 4: 1 to soon 2: 1 • AFFECTED BY THE BABY BOOMERS--STRAIN ON SOCIAL SECURITY – MEDICARE • FEDERALLY FUNDED HEALTH CARE (INSURANCE) AND DISABILITY PAYMENTS – MEDICAID • FEDERAL-STATE FUNDED HEALTH INSURANCE FOR LOW INCOME AND ELDERLY SOCIAL WELFARE PROGRAMS – MEAN TESTED PROGRAMS (ELIGIBILITY BASED ON AGE, INCOME, HEALTH) – PROVIDE SOCIAL ASSISSTANCE
![INTERGOVERNMENTAL TRANSFERS OF REVENUE MONEY COLLECTED BY FEDERAL GOVERNMENT RETURNED TO STATE GOVERNMENTS INTERGOVERNMENTAL TRANSFERS OF REVENUE • MONEY COLLECTED BY FEDERAL GOVERNMENT RETURNED TO STATE GOVERNMENTS.](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-21.jpg)
INTERGOVERNMENTAL TRANSFERS OF REVENUE • MONEY COLLECTED BY FEDERAL GOVERNMENT RETURNED TO STATE GOVERNMENTS. • APPROXIMATELY $400 BILLION ANNUALLY DIVIDED AMONG 50 STATES AND WASHINGTON D. C. • MONEY RETURNED MUST BE SPENT ACCORDING TO SPECIFIC GUIDELINES
![DISCRETIONARY SPENDING SPENDING THAT VARIES ACCORDING TO NEEDS OR SITUATIONS LARGEST DISCRETIONARY DISCRETIONARY SPENDING • SPENDING THAT VARIES ACCORDING TO NEEDS OR SITUATIONS • LARGEST DISCRETIONARY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-22.jpg)
DISCRETIONARY SPENDING • SPENDING THAT VARIES ACCORDING TO NEEDS OR SITUATIONS • LARGEST DISCRETIONARY SPENDING INCLUDES: • DEFENSE • EDUCATION • ENVIRONMENT • SCIENTIFIC RESEARCH (SPACE PROGRAM)
![Sect 4 STATE AND LOCAL TAXES States collect over 500 bilion on taxes Sect. 4 STATE AND LOCAL TAXES • States collect over $500 bilion on taxes](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-23.jpg)
Sect. 4 STATE AND LOCAL TAXES • States collect over $500 bilion on taxes each year. • TWO LARGEST SOURCES OF STATE REVENUE ARE: • INTERGOVERNMENTAL TRANSFERS OF REVENUE. --25% • MONEY TRANSFERRED FROM FEDERAL TO STATE GOVERNMENTS • INSURANCE TRUST REVENUE. --22% • MONEY PAID TO THE STATE BY TAXPAYERS SIMILAR TO SOCIAL SECURITY.
![OTHER STATE TAXES SALES TAX EXCISE TAX19 2 9 to 7 OTHER STATE TAXES • SALES TAX & EXCISE TAX--19% • 2. 9% to 7.](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-24.jpg)
OTHER STATE TAXES • SALES TAX & EXCISE TAX--19% • 2. 9% to 7. 25% rate (varies state to state) • Can act as a “Sin Tax” • INCOME TAXES--13% • Like most state taxes, they tend to be proportional ! • CORPORATE TAXES--2. 5% • Low corporate taxes tend to encourage industrial development.
![OTHER STATE TAXES16 LICENSING FEES TRANSFER FEES STOCK VALUE FEE SEVERANCE OTHER STATE TAXES--16% • • • LICENSING FEES TRANSFER FEES STOCK VALUE FEE SEVERANCE](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-25.jpg)
OTHER STATE TAXES--16% • • • LICENSING FEES TRANSFER FEES STOCK VALUE FEE SEVERANCE TAX INHERITANCE TAX – A TAX ON VALUE OF PROPERTY THE FAMILIES OF THE DECEASED. A STATE TAX SIMILAR TO FEDERAL ESTATE TAX.
![LIMITATIONS ON STATE TAXES CANNOT TAX FEDERAL PROPERTY CANNOT TAX INTERSTATE COMMERCE LIMITATIONS ON STATE TAXES • CANNOT TAX FEDERAL PROPERTY • CANNOT TAX INTERSTATE COMMERCE](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-26.jpg)
LIMITATIONS ON STATE TAXES • CANNOT TAX FEDERAL PROPERTY • CANNOT TAX INTERSTATE COMMERCE --TAX SALE OF PRODUCTS BETWEEN STATES • CANNOT TAX NON PROFIT GROUPS. • CHURCHES, SCHOOLS ETC. • TAX EXEMPT STATUS--NOT SUBJECT TO TAXES
![STATE SPENDING STATES HAVE 2 CATEGORIES OF SPENDING OPERATING BUDGETDAY TO DAY STATE SPENDING • STATES HAVE 2 CATEGORIES OF SPENDING: • OPERATING BUDGET--DAY TO DAY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-27.jpg)
STATE SPENDING • STATES HAVE 2 CATEGORIES OF SPENDING: • OPERATING BUDGET--DAY TO DAY SPENDING NEEDS. (SALARIES, RESOURCES, ETC). • • MANY STATE BY LAW MUST HAVE A BALANCED OPERATING BUDGET. CAPITAL BUDGET--SPENDING ON LONG TERM AND MAJOR INVESTMENTS
![WHERE ARE STATE TAXES SPENT EDUCATION FUNDING OF STATE UNIVESITIES EVERY WHERE ARE STATE TAXES SPENT? • EDUCATION • FUNDING OF STATE UNIVESITIES • EVERY](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-28.jpg)
WHERE ARE STATE TAXES SPENT? • EDUCATION • FUNDING OF STATE UNIVESITIES • EVERY STATE HAS AT LEAST ONE UNIVERSITY • FUNDING PUBLIC LOCAL SCHOOL SYSTEMS. • SCHOOLS RECEIVE APPROXIMATELY $8701 PER STUDENT IN STATE AID. (BASED ON ATTENDANCE) • PUBLIC SAFETY • STATE POLICE, STATE CRIME LABS, CORRECTIONS DEPT, FIRE DEPTS.
![WHERE ARE STATE TAXES SPENT Continued PUBLIC WELFARE HOSPITALS SOME UNEMPLOYMENT WHERE ARE STATE TAXES SPENT? (Continued) • PUBLIC WELFARE – – HOSPITALS --SOME UNEMPLOYMENT](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-29.jpg)
WHERE ARE STATE TAXES SPENT? (Continued) • PUBLIC WELFARE – – HOSPITALS --SOME UNEMPLOYMENT TEST FOR POLLUTION MEDICAL CLINICS INSPECT WATER SUPPLIES • HIGHWAYS AND TRANSPORTATION – CONSTRUCTION AND MAINTENANCE OF ROADS • ARTS AND RECREATION – STATE FORESTS & PARKS, MUSEUMS • ADMINISTRATION. – PAY SALARIES OF STATE OFFICIALS
![LOCAL GOVERNMENT FORMS OF REVENUE 87 000 LOCAL GOVERNMNET UNITS COLLECT ALMOST LOCAL GOVERNMENT FORMS OF REVENUE • 87, 000 LOCAL GOVERNMNET UNITS • COLLECT ALMOST](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-30.jpg)
LOCAL GOVERNMENT FORMS OF REVENUE • 87, 000 LOCAL GOVERNMNET UNITS • COLLECT ALMOST $484 BILLION IN TAX REVENUE. • THREE LARGEST SOURCES OF REVENUE ARE: • INTERGOVERNMENTAL FORMS OF REVENUE • PROPERTY TAXES • OTHER TAXES
![PROPERTY TAXES TAX ON VALUE OF ASSESSED PROPERTY REAL PROPERTYTAX ON REAL PROPERTY TAXES • TAX ON VALUE OF ASSESSED PROPERTY. • REAL PROPERTY--TAX ON REAL](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-31.jpg)
PROPERTY TAXES • TAX ON VALUE OF ASSESSED PROPERTY. • REAL PROPERTY--TAX ON REAL ESTATE & STRUCTURES ON LAND • PERSONAL PROPERTY--MOVABLE POSSESSIONS OR ASSETS • VALUE DETERMINED BY TAX ASSESSORS – 1) TAX VALUES HARD TO COMPARE – 2) ASSESSORS HARD TO TRAIN – 3) DISCOURAGES PROPERTY IMPROVEMENT
![OTHER TAXES INCLUDE HOTEL MOTEL TAXES OCCUPATIONAL TAXESLIKE INCOME EXCISE TAXES OTHER TAXES INCLUDE: • • HOTEL / MOTEL TAXES OCCUPATIONAL TAXES(LIKE INCOME) EXCISE TAXES](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-32.jpg)
OTHER TAXES INCLUDE: • • HOTEL / MOTEL TAXES OCCUPATIONAL TAXES(LIKE INCOME) EXCISE TAXES LICENSING FEES
![LOCAL SPENDING LARGEST CATEGORIES OF SPENDING ARE 1 EDUCATION 40 2 LOCAL SPENDING • LARGEST CATEGORIES OF SPENDING ARE: – 1) EDUCATION 40% – 2)](https://slidetodoc.com/presentation_image_h/a015bc2c413b64f4aeebd3d7122b8975/image-33.jpg)
LOCAL SPENDING • LARGEST CATEGORIES OF SPENDING ARE: – 1) EDUCATION 40% – 2) UTILITES – 3) GENERAL WELFARE (POLICE AND FIRE)
Chapter 14: taxes and government spending section 1
Chapter 14 taxes and government spending
Chapter 14 taxes and government spending
State and local taxes and spending
Income tax meaning
Tax multiplier equation
Keynsian cross
Tax multiplier equation
Government departments are accountable their spending
Government spending multiplier formula
Government spending multiplier
How to calculate mpc
Government spending multiplier
Chapter 2 income benefits and taxes
Section 4 best practices of successful people
Chapter 23 understanding income and taxes
Flow chapter 2
Chapter 1 principles of government
Deferred tax asset journal entry
Income tax expense
Chapter 1 section 2
Chapter 1 section 2 forms of government
Employer payroll tax expense journal entry
State and federal constitutions
John and marcia monthly spending plan 1 answer key
Why is evaluating and adjusting a spending plan important
Vat
Mm proposition ii with taxes
How much does wanda earn per hour
How many types of taxes are there
Progressive tax
Classification of taxation
Elmira city school calendar 2020-2021
Understanding taxes