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1.) Why do we have taxes?

2.) What are some examples of taxes that we have to pay?
3.) Do we pay too many taxes? Why or why not?

The Taxation Dilemma?
• Americans hate taxes but love services.
– $10,300 for every person annually!!

• Who should pay taxes? • How much should everyone pay?

• What should we tax?

Reasons for Taxes?
• For the government to make money!!! • To stimulate the economy. • What does the government spend it on?
– What the people want it to be spent on.

Who Benefits?
• We all do!!!
– Roads, schools, prisons, police, firefighters, hospitals, water, natural disaster, military.

• People who can’t afford to buy necessities of life on their own. • Do some benefit more than others??

Types of Taxes
• Proportional Tax:
– Everyone pays same percentage. – If Bob makes $10,000 he pays $2,000 – If Jill makes $100,000 she pays $20,000

• Examples
– Occupational tax

Types of Taxes
• Progressive Tax:
– People who make more pay a higher percentage. – Examples: – Income tax

Proportional or Progressive?

Types of Taxes
• Regressive Tax:
– People who makes less pay a higher percentage of taxation. – Example:
• Sales tax? Property Tax.

Type of Tax?

Other types of taxes
• • • • • • • • • Sales Tax: Property Tax: Sin Tax: Income tax: Social Security: Corporate tax: Excise Tax: Gift Tax: User Fees:

Economic Impact of Taxes
• What can the government do to help improve the economy?

More Taxes?
• Spend your way out: • Government tries to fix societies problems by taxing more so that they can pay for programs that address the problems.
– Examples of programs?
• Social security, medical, welfare, food stamps, drug prevention, public works projects.

• Democrats

Less Taxes?
• Trickle down economics:
– Tax the rich less so that they have more money to invest back into society. – How does this benefit society as a whole?

• Republicans

• Also known as Reaganomics.

How about War?

Does it work?

• The country is facing hard times and the president needs your group of advisors to come up with a policy that will help get the government out of debt and help out the U.S. economy and unemployment.
– Write a one page recommendation for how he should fix the problem.
• More taxes, programs? What types, why? • Less taxes, programs? Why, who will get tax breaks? why.?

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