1 / 13

Taxes – Chapter 14. FYI: These NoTES ARE NOT IN YOUR TEXTBOOK!

Taxes – Chapter 14. FYI: These NoTES ARE NOT IN YOUR TEXTBOOK! . Quote By Mark Twain:. “Although everyone complains about the weather, nobody does anything about it.” How does this relate to taxes? . Questions we will answer . What kind of taxes do people in the United States pay?

jeb
Download Presentation

Taxes – Chapter 14. FYI: These NoTES ARE NOT IN YOUR TEXTBOOK!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Taxes – Chapter 14.FYI: These NoTES ARE NOT IN YOUR TEXTBOOK!

  2. Quote By Mark Twain: • “Although everyone complains about the weather, nobody does anything about it.” • How does this relate to taxes?

  3. Questions we will answer • What kind of taxes do people in the United States pay? • Why do we pay taxes? • How do we determine who pays taxes? • What effect does a tax have on taxpayers? • Who really pays taxes?

  4. Kinds of Taxes Americans Pay • Tax: Is a payment to govt. that is required by law • Income tax: tax on the earnings of an individual and a corporation. • Can be federal, state and city • Excise Tax: tax on a manufacture or sale of a specific good or service. • Tobacco, alcohol, cosmetics, travel and gasoline

  5. Sales Tax: Is a levy on the selling price of most goods and services in a particular state, county or city • McHenry County • Lake County • Dupage County • Wisconsin • Payroll Tax: Finance govt. S.S program • Employer pays to the government an equal amount to the employee’s contribution • 6.2% of income

  6. Property Tax: Tax is based upon the value of taxpayer’s possessions. • Home and land • Sometimes boats and automobiles • Estate Tax: inheritance or large gifts • User Fees: Admission into a state park or obtaining a passport

  7. Why Do We Pay Taxes? • Help pay for government expenses and services • Redistribution of wealth • Takes money from one group and transfers it to another group • Food Stamps: Tax money is used to fund this program.

  8. Aid to certain regions and industries • Tax relief for opening new businesses • Protective Tariff: Raises the price of the imported good to discourage purchasing • Revenue Tariff: Generate Income • Change Behavior • Discourage people from buying products that the government considers harmful. • Improve the Nation’s Economy

  9. How Do We Determine Who Pays Taxes? • 2 approaches • Benefits Received Principle: • Only those who gain from a government service. • EX: Toll ways, Gasoline • Ability to pay Principle: • People who earn more, or can afford to pay more than others. • People with higher incomes are in a higher tax bracket.

  10. What Effect Does A Tax Have On Taxpayers? • 3 Types • Progressive: • take a large percent of a person’s TOTAL INCOME as that income increases. • Use of brackets- Between X and X has ___% of a tax rate • Proportional: • All persons to pay the same % of their income tax • EX: Self Employment Tax- 15.3% • Income: $8000.00 = $1224.00 in taxes • Income : $72,000 = $11016.00 in taxes

  11. Regressive Tax Sales Tax: Taking a larger portion from a taxpayer with a lower income than from a taxpayer with a higher income • EX: Buyer A, Buyer B • Both buy a $9,000.00 car • Both paid 8% sales Tax = $720.00 • Buyer A earns $7200.00 a year = 10% of income • Buyer B earns $72,000.00 a year = 1% of income

  12. Who Really Pays Taxes? • Indirect Taxes • Is one that can be passed on, or shifted to someone other than the person making the payment to the government • EX: Family rents an apartment • Use of rent to help pay property tax • Property tax goes to govt. • Part of rent goes to pay that tax

  13. Direct Tax: • Paid directly by the tax payer • They know how much they are paying • Ex: • Sales Tax • Income Tax

More Related