Taxes Government Spending Chapter 14 Section 1 What
![Taxes & Government Spending Chapter 14 Section 1 What are Taxes? Taxes & Government Spending Chapter 14 Section 1 What are Taxes?](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-1.jpg)
![Taxes & Government Spending ¡ Objectives: l l l Understand how the government uses Taxes & Government Spending ¡ Objectives: l l l Understand how the government uses](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-2.jpg)
![Taxes & Government Spending If you look at all taxes taken from your paycheck, Taxes & Government Spending If you look at all taxes taken from your paycheck,](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-3.jpg)
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![Taxes & Government Spending ¡ Funding Government Programs l l A TAX is a Taxes & Government Spending ¡ Funding Government Programs l l A TAX is a](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-5.jpg)
![Taxes & Government Spending l l Without revenue from taxes, the government would not Taxes & Government Spending l l Without revenue from taxes, the government would not](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-6.jpg)
![Taxes & Government Spending ¡ Taxes & the Constitution l l l Taxation is Taxes & Government Spending ¡ Taxes & the Constitution l l l Taxation is](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-7.jpg)
![Taxes & Government Spending 1. Power to Tax + Article I Section 8 Clause Taxes & Government Spending 1. Power to Tax + Article I Section 8 Clause](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-8.jpg)
![Taxes & Government Spending 2. Limits on the Power to Tax + Constitution limits Taxes & Government Spending 2. Limits on the Power to Tax + Constitution limits](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-9.jpg)
![Taxes & Government Spending ¡ Tax Bases and Tax Structure l l Tax Base Taxes & Government Spending ¡ Tax Bases and Tax Structure l l Tax Base](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-10.jpg)
![Taxes & Government Spending l l Proportional Tax – a tax for which the Taxes & Government Spending l l Proportional Tax – a tax for which the](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-11.jpg)
![Taxes & Government Spending l l l Regressive Tax – a tax which the Taxes & Government Spending l l l Regressive Tax – a tax which the](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-12.jpg)
![Taxes & Government Spending ¡ Characteristics of a Good Tax l A good tax Taxes & Government Spending ¡ Characteristics of a Good Tax l A good tax](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-13.jpg)
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![Taxes & Government Spending ¡ Defining Fairness l Two proposed ideas 1. Benefits-Received Principle Taxes & Government Spending ¡ Defining Fairness l Two proposed ideas 1. Benefits-Received Principle](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-15.jpg)
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- Slides: 17
![Taxes Government Spending Chapter 14 Section 1 What are Taxes Taxes & Government Spending Chapter 14 Section 1 What are Taxes?](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-1.jpg)
Taxes & Government Spending Chapter 14 Section 1 What are Taxes?
![Taxes Government Spending Objectives l l l Understand how the government uses Taxes & Government Spending ¡ Objectives: l l l Understand how the government uses](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-2.jpg)
Taxes & Government Spending ¡ Objectives: l l l Understand how the government uses taxes to fund programs. Identify the roots of the concept of taxation in the United States Constitution. Describe types of tax bases and tax structures. List the characteristics of a good tax. Identify who bears the burden of a tax.
![Taxes Government Spending If you look at all taxes taken from your paycheck Taxes & Government Spending If you look at all taxes taken from your paycheck,](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-3.jpg)
Taxes & Government Spending If you look at all taxes taken from your paycheck, it can be a bummer. ¡ Frustration over taxes, is what led the American Colonists to go to war against Britain and declare their independence. ¡
![Taxes Government Spending Money taken from your paycheck it is not done without Taxes & Government Spending Money taken from your paycheck, it is not done without](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-4.jpg)
Taxes & Government Spending Money taken from your paycheck, it is not done without your consent. ¡ As citizens of the United States, we authorize the government, through the Constitution and our elected representatives in Congress, to raise money in the form of taxes. ¡
![Taxes Government Spending Funding Government Programs l l A TAX is a Taxes & Government Spending ¡ Funding Government Programs l l A TAX is a](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-5.jpg)
Taxes & Government Spending ¡ Funding Government Programs l l A TAX is a required payment to a local, state, or national government. Taxation is the primary way that the government collects money. Taxes give the government the money needed to operate. Revenue – income received by a government in the form of taxes and other non-tax sources.
![Taxes Government Spending l l Without revenue from taxes the government would not Taxes & Government Spending l l Without revenue from taxes, the government would not](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-6.jpg)
Taxes & Government Spending l l Without revenue from taxes, the government would not be able to provide the goods and services that we not only benefit from, but that we expect the government to provide. Provide things like… Education ¡ National Defense ¡ Highways ¡ Law Enforcement ¡
![Taxes Government Spending Taxes the Constitution l l l Taxation is Taxes & Government Spending ¡ Taxes & the Constitution l l l Taxation is](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-7.jpg)
Taxes & Government Spending ¡ Taxes & the Constitution l l l Taxation is a powerful tool. The founders of the United States did not, without careful consideration, give their new government the power to tax. The Constitution they created spells out specific limits on the government’s power to tax.
![Taxes Government Spending 1 Power to Tax Article I Section 8 Clause Taxes & Government Spending 1. Power to Tax + Article I Section 8 Clause](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-8.jpg)
Taxes & Government Spending 1. Power to Tax + Article I Section 8 Clause 1 To lay and collect taxes, duties, Imports, and excise, to pay the debts, and provide for the common defense and general welfare of the united States; but all duties, imports, and excises shall be uniform throughout the United States.
![Taxes Government Spending 2 Limits on the Power to Tax Constitution limits Taxes & Government Spending 2. Limits on the Power to Tax + Constitution limits](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-9.jpg)
Taxes & Government Spending 2. Limits on the Power to Tax + Constitution limits certain kinds of taxes. 1. the purpose of a tax must be for the “common defense and general welfare”. A tax cannot bring money to an individual 2. Federal taxes must be the same in every state.
![Taxes Government Spending Tax Bases and Tax Structure l l Tax Base Taxes & Government Spending ¡ Tax Bases and Tax Structure l l Tax Base](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-10.jpg)
Taxes & Government Spending ¡ Tax Bases and Tax Structure l l Tax Base - is the income, property, good, and service that is subject to a tax. Income – Individual Income Taxes Property – Property Taxes Good & Service – Sales Taxes
![Taxes Government Spending l l Proportional Tax a tax for which the Taxes & Government Spending l l Proportional Tax – a tax for which the](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-11.jpg)
Taxes & Government Spending l l Proportional Tax – a tax for which the percentage of income paid in taxes remains the same for all income levels. i. e. a state income tax is 6% of your individual income. Progressive Tax – a tax for which the percentage of income paid in taxes increases as income increases. i. e. the US federal income tax
![Taxes Government Spending l l l Regressive Tax a tax which the Taxes & Government Spending l l l Regressive Tax – a tax which the](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-12.jpg)
Taxes & Government Spending l l l Regressive Tax – a tax which the percentage of income paid in taxes decreases as income increases. i. e. the sales tax The higher-income households spend a lower proportion of their incomes on taxable goods and services.
![Taxes Government Spending Characteristics of a Good Tax l A good tax Taxes & Government Spending ¡ Characteristics of a Good Tax l A good tax](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-13.jpg)
Taxes & Government Spending ¡ Characteristics of a Good Tax l A good tax should have four characteristics 1. Simplicity – it should be simple and easily understood by everyone 2. Efficiency – the government should be able to collect the taxes without spending too much time or money.
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Taxes & Government Spending ¡ Characteristics of a Good Tax 3. Certainty – it should be clear to the taxpayer when a tax is due, how much money is due, and how the tax should be paid. 4. Equity – the tax system should be fair, so that no one bears too much or too little of the tax burden.
![Taxes Government Spending Defining Fairness l Two proposed ideas 1 BenefitsReceived Principle Taxes & Government Spending ¡ Defining Fairness l Two proposed ideas 1. Benefits-Received Principle](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-15.jpg)
Taxes & Government Spending ¡ Defining Fairness l Two proposed ideas 1. Benefits-Received Principle - A person should pay taxes based on the level of benefits he or she expects to receive. - People who drives should pay the gasoline taxes that are used to build and maintain highways.
![Taxes Government Spending 2 AbilitytoPay Principle People should pay taxes according to Taxes & Government Spending 2. Ability-to-Pay Principle - People should pay taxes according to](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-16.jpg)
Taxes & Government Spending 2. Ability-to-Pay Principle - People should pay taxes according to their ability to pay. - This is a progressive tax plan – individual income taxes.
![Taxes Government Spending Who Bears the Burden of a Tax l The Taxes & Government Spending ¡ Who Bears the Burden of a Tax? l The](https://slidetodoc.com/presentation_image_h/07737a7350696424044c92ff76ff126a/image-17.jpg)
Taxes & Government Spending ¡ Who Bears the Burden of a Tax? l The people who pay the tax l The business who collects the tax and sends it into the government. l Incidence of a tax – who will pay the final burden of the tax. l When policymakers consider a new tax, they examine who will actually bear the burden. Sometimes the consumer bears it and sometimes the business has to bear it.
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