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Taxes PPT

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Taxes PPT Powered By Docstoc
					    Our Government




What does our Government do
          anyway?
  1. Taxes Fund Public Goods and
             Services
                               Health Care for Elderly
National Defense

                                          Social Services




 State and
Local Police                       Public Education

               Financial Aid
2.     Regulates Business Activity
Monopoly and Legal Monopolies
Protects Consumers-Agencies
3.      Redistributes Income
1.   Unemployment
2.   Welfare
3.   Social Security
    Agencies-Enforce the Laws
•   USDA (Department of Agriculture)
•   Consumer Product Safety Commission
•   Fair Package and Labeling Act
•   Child Protection and Toy Safety Act

Companies that break these laws are
 penalized!
OK, how does the Gov. pay
       for all this?
        TAXES!!!
  The Power to Collect
        Taxes
• American Revolution
  caused debt
• Tax was necessary
  to pay debt
• Article 1, Section 8 of
  the U.S. Constitution
  granted Congress
  power to tax
   Early
   Taxes
• Cooking Oil, Foreigners,
  Slaves (Ancient Egypt)
• Sales, Inheritance, Imports,
  Exports (Ancient Rome)
• Beards, Beehives, Boots,
  Souls (Russia, 1702)
• Bachelors (England,
  1695; Missouri, 1820)
    Voluntary
   Compliance
Each person is
responsible for
filing a tax return.
  Tax Avoidance versus Tax
          Evasion
• Tax Evasion: Failure to pay legally due taxes
• Tax Avoidance: Legal means of decreasing
  your tax bill
       Who should pay?

• BENEFIT             • ABILITY TO PAY
  PRINCIPAL
                      People with higher
Those who receive the   incomes should pay
  benefit should pay    more in taxes
  for it
Tax Brackets – 2011 Taxable
Income
1. Income tax-tax paid on income received
            Types of Taxes
1. Income-% is taxed
2. Sales Tax-consumption tax charged at the point of
   purchase for certain goods and services
3. Property Tax- paid for owning land & property
4. Excise Tax- placed on certain products to
   discourage use
   Types of Taxes (continued)
5. Social Security Tax- tax is imposed
   upon working people and their employers
6. Estate & Gift Tax- limits the build-up of
   wealth
7. Business & License Tax- fees for
   having a business or activities
8. Tariffs- taxes on imported goods
   What are the 3 levels of
       Government?
Federal-income tax
State-income tax, sales tax
City/Local-property tax
    The Federal Government
    Dollar- Where It Comes
    From
                                 Personal
  Social Security, Medicare,   Income Taxes
and Unemployment and other         43%
      Retirement Taxes
            35%



                                               Excise, Customs,
                                                Estate, Gift, and
                                              Miscellaneous Taxes
                                                       7%



                                            Corporate
                                          Income Taxes
    Borrowing to                               7%
   Cover Deficit 8%
What’s the Trend?
  The Federal Government
  Dollar-
  Where It Goes          Social Security, Medicare, and
                                other Retirement
                                      38%


Law Enforcement
  and General
  Government
      3%
                                                     National Defense,
                                                      Veterans, and
                                                      Foreign Affairs
                                                           20%


Social Programs
      21%

  Physical, Human, and                               Net Interest on
 Community Development                                  the Debt
          10%                                              8%
 What is our Federal Debt?
• $14 TRILLION!!!
http://www.usdebtclock.org/index.html
Federal Tax Dollars
• Main source: Personal Income Tax
• Main expenditure: Social Security

State Tax Dollars
• Main source: State Income Tax
  2nd: Sales Tax
• Main expenditure: Health & Human Services
  2nd: Education
         2 Tax Rates
PROPORTIONAL   PROGRESSIVE




  $              $
And where did it go? (Federal)


                               SS, Medicare




      Interest on Debt




                         National Defense
    Taxpayer
     Rights
• Information on taxpayer returns is private
• Taxpayers have the right to appeal an
  IRS decision




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posted:1/2/2013
language:English
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