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CH9 Section 3 p. 238 Terms:

CH9 Section 3 p. 238 Terms:. Intergovernmental revenue 238 funds collected by one level of government that are distributed to other levels of government. Federal government to states. Property tax. 241 a tax on possessions

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CH9 Section 3 p. 238 Terms:

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  1. CH9 Section 3 p. 238 Terms: Intergovernmental revenue 238 funds collected by one level of government that are distributed to other levels of government. Federal government to states.
  2. Property tax 241 a tax on possessions Tangible: real estate, buildings, furniture, automobiles, farm animals Intangible: stocks, bonds, bank accounts Tax assessor: Government person authorized to put a value on property for tax purposes. Must know “reasonable” value of property.
  3. Payroll withholding statement 242 summary statement attached to a paycheck, detailing Two-weeks, month’s pay (gross income) Withholding and deductions Payments and deductions so far in the year What employee is actually receiving (net income)
  4. Section 4 p. 244 Terms: Accelerated depreciation 245 tax relief from the early 1980s allowing businesses to Depreciate capital more than normal Allowing them to reduce their taxes substantially.
  5. Investment tax credit 245 a reduction in business taxes that are tied to investment in New plants and equipment Business taxes went from 12.5% in 1980 to 6.2% in 1983 Most ordinary citizens still pay an average of 15% of their income. “Trickle-down economics”
  6. surcharge 245 additional tax above and beyond the base rate 1986 tax restructuring intended to prevent rich from not paying taxes at all
  7. Alternative minimum tax Personal income rate that applies whenever the amount of taxes paid falls below the designated level People at a prescribed income rate, have to pay a minimum tax of 20%, regardless of Deductions loopholes
  8. Recent AMT rates
  9. Capital gains 246 profits from the sale of an asset held for 12 months. Long-term investments Republicans reduced this tax in 1997 28% to 20%
  10. Value-added tax 247 aka: VAT A tax placed on the value that manufacturers add at each stage of production Like a national sales tax European Union Japan US does not have one.
  11. Flat tax 249 proportional tax on individual income after a prescribed level has been reached. Advantages Simple Minimizes loopholes Easy to prepare Disadvantages Taxes used for incentive would disappear Charities, environment, investment/reinvestment, consumption Difficulty in deciding the rate levels
  12. Hwk Assessments, Class Work, to Know
  13. Assessments: Checking for Understanding 1 Funds collected by one level of government that are distributed to other levels of government for expenditures.
  14. Assessment 3 Sales tax Intergovernmental revenues Individual income taxes Employee retirement contributions Assessments levied on state employees
  15. Assessment 4 State: Collect from intergovernmental revenues Sales taxes Employee retirement contributions Individual income taxes Local: Collect from intergovernmental revenues Property taxes Public utilities and state liquor store sales Sales taxes
  16. Assessment 5 Federal income tax State income tax City income tax (not LA) FICA taxes
  17. Assessments: Checking for Understanding 1 To influence and reward behavior Investment/Reinvestment Charity Environment Consumption
  18. Assessment 3 (just list – review in text) Economic Recovery Tax Act of 1981 Tax reform act of 1986 Omnibus Budget Reconciliation Act of 1993 Taxpayer Relief Act of 1997 2001 tax reform
  19. Assessment 4 Advantages: Hard to avoid Widely spread tax incidence Easy to collect Encourages savings Disadvantages: Invisible to consumers Competes with state sales taxes
  20. Assessment 5 Advantages Simple Minimizes loopholes Easy to prepare Disadvantages Taxes used for incentive would disappear Charities, environment, investment/reinvestment, consumption Difficulty in deciding the rate levels
  21. Assessment 6 Tax code is more complex now Record tax revenues of the 1990s Political power changes
  22. image, p. 239 Question Intergovernmental revenue Sales taxes + which one(s) do you directly pay into at your age? Sales tax Hospital fees Utility and liquor stores Other
  23. image, p. 240 Question Highest: Hawai’i and New York Lowest: New Hampshire and South Dakota
  24. image, p. 241 Question About 27%, +how did we get that number? (800 – 586.69) ÷ 800
  25. image, p. 243 Questions 1 By using credits to reduce its tax liability 2 Because they are able to take advantage of favorable tax rules and regulations Most can afford expensive tax lawyers and accountants that ordinary cannot.
  26. Image, p. 245 Question Tax credits for children + Was the American Revolution about NOT having to pay taxes? No, it was about Having the right to decide if a tax was necessary and proper. Taxation WITH representation
  27. Image, p. 246 Question 10 years Monday, November 15, 2010, the battle in the “Lame Duck: Congress begins….. Conservatives want to make them permanent Liberals want them to end, and the rich to pay their taxes…..
  28. Image, p. 247 Questions 1 Tax revenues as a percentage of GDP 2 Canada’s rate increased slightly throughout the period
  29. Image, p. 248 Question VAT tends to be regressive because persons with lower and fixed incomes tend to spend a larger percentage of their incomes on tax.
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