DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 05/05/11, Topic: Taxes2) Next line, write “Opener #54” and then:

1) Write 1 high+1 low in last 24 hours2) Rate your understanding of yesterday: lost<1-5>too easy (3 is perfect)

3) Respond to the Opener by writing at least 1 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Announcements: None

Agenda1) Tax Introduction2) Biz Plan 2 due Tues 5/10

End Goal, you will be able to…1) How should we change our tax policies?

Reminder1) Biz Plan 2 due Tues 5/10

Journ #54a, Title “Taxes Debate”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Taxes are Patriotic

1) Taxes pay for things that we benefit from, but can’t afford ourselves (schools, security, etc)

2) No person is an island, so taxes allow us to help every American live well

PRO: Taxes are Evil1) Taxes waste your money, you can buy things yourself(schools, security, etc)

2) Taxes make it hard for us to live well, by taking away our money

US Avg Tax: 35%

Denmark Avg Tax: 60%

Journ #54b, Title “Denmark Debate”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Denmark’s 59%

1) People in Denmark might not be the richest or most powerful, but they are the happiest

2) Free health care, paid for vacation time, and free education, so less debt.

PRO: America’s 35%1) Already, you work Jan-April for the gov, and just May-Dec for yourself

2) Money = freedom, if I work hard, I can buy the things Denmark provides, and make my own choices on the way.

Notes #54a, Title: “Taxes” 1) Corporate Income Tax: Approx 20% federal tax

on profits, CA: 8% tax2) Personal Income Tax: Approx 0-35% federal

tax on income, CA: 0-9% state tax3) Sales Tax: Tax on final point of sale (9.25%)4) Europe: Valued Added Tax (VAT): Tax at each

stage product is improved, Europe Avg: 20%5) Payroll Taxes: Approx 15% (12% Social

Security-6% by you, 6% by boss, 3% Medicare) tax on workers to pay for current retired, shows up as: FICA, SS, SSWT or OASDI

6) Estate Tax (Death Tax): Tax on gifts + inheritance, 0% (up to 5 mil) 35% each $ after

7) Withholding System: Since 1943, gov ask biz to withhold worker’s income tax & pay for them

FED: Fed Income TaxSIT: State Income TaxFICA: Social SecuritySUI: Unemp InsuranceMEDICARE: Old Ppl H.C.

Notes #54a, Title: “Do Mr. Chiang’s Taxes” 8) W-4: Withholding enrollment form. Exemption # determine how much withheld:“0”: Biz withheld a lot, tax refund likely“1”: Biz withheld about right, minimal refund/due“2”: Biz withheld little, taxes due likely9) W-2: Annual report from your boss of how

much of your taxes boss paid for you.10) April15: Due date to file last year’s taxes (W2)

Do Mr. Chiang’s Taxes (10 Points)

Don’t make fun of Mr. Chiang’s pay, the chance to Journ with you each day is…priceless.

Review1) Corporate Income Tax: Approx 20% federal tax

on profits, CA: 8% tax2) Personal Income Tax: Approx 0-35% federal

tax on income, CA: 0-9% state tax3) Sales Income Tax: Tax on final point of sale4) Europe: Valued Added Tax (VAT): Tax at each

stage product is improved, Europe Avg: 20%5) Payroll Taxes: Approx 15% (12% Social

Security-6% by you, 6% by boss, 3% Medicare) tax on workers to pay for current retired, shows up as: FICA, SS, SSWT or OASDI

6) Estate Tax (Death Tax): Tax on gifts + inheritance, 0% (up to 5 mil) 35% each $ after

Notes #55a, Title: “Do Mr. Chiang’s Taxes” 1) Tax Refund: Refund of some withholding2) Deduction: Lowers your taxable income, the

earning level used to measure your tax (donations)

3) Tax Credit: Real money refund or free money, (college spending)

4) Earned Income Tax Credit (EIC): Tax credit for poor, who pay no taxes, but gov gives money to help them live.

Notes #55b, Title: “Taxes, Part 2” 5) Federal Revenue: Biz Income + Person Income Tax (+Soc Sec Tax) Capital Gains Tax (Income Tax on Investments)Excise/Customs Tax

(Foreign Goods)Estate Tax (Inheritance)6) CA Revenue: Biz Income + Personal Income Tax + Sales Tax7) County+City: Property Tax + Sales Tax + Fees8) Prop 13: Limit prop tax to 1% of bought price (reduce gov+school rev)

Journ #55a, Title “Tax Debates”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Increase Customs

Tax Rate1) Increasing tax on for. goods can help US biz

2) It’s paid by foreigners, so less taxes to be paid by American tax payers

PRO: Lower Customs Tax Rate1) Lowering this tax will encourage for. nations to lower tax on US goods

2) It hurts shoppers, since US biz can charge more, if their for competitors’ prices are higher b/c of tax

Journ #55b, Title “Corp Tax Debate”3) Read the 2 sides, choose 1 side, and write which you choose and explain why.4) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Increase Corp Tax

Rate1) Biz won’t leave, b/c taxes help pay for stable infrastructure and legal sys

2) Biz create negative externalities like pollution which must be cleaned up through tax money

PRO: Lower Corp Tax Rate1) Biz leave US to other countries with lower taxes if we don’t lower

2) Less corp taxes more directly leads to more money to create jobs

Journ #55b, Title “Estate Tax Debate”5) Read the 2 sides, choose 1 side, and write which you choose and explain why.6) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Increase Estate Tax

Rate1) This money is more needed by the gov, than the inheritors, first $3 mil already tax free

2) Every generation should have to make their own start in life

PRO: Lower Estate Tax Rate1) Dead already paid tax on this money when they paid income tax

2) We should have the right to help our children live better lives

Journ #55c, Title “Poor v Wealthy”

1) Copy Source Title: ABC+CNBC

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Journ Sections

$20 Billion Dollar Annual Deficit

Red: No personal income taxYellow: No income tax, but there is capital gains tax

State Income Tax Map

Journ #56a, Title “Sales Tax Debate”7) Read the 2 sides, choose 1 side, and write which you choose and explain why.8) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Increase Sales Tax

Rate1) Lead to less wasteful consumption, more saving

2) High sales tax will help raise money for CA’s budget crisis (schools)

PRO: Lower Sales Tax Rate1) Lower sales tax increases spending, stimulate the economy

2) Sales tax hurts poor more, since the flat rate of 8% is harder when you make less money.

Journ #56b, Title “CA Tax Debate”9) Read the 2 sides, choose 1 side, and write which you choose and explain why.10) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: CA Needs More

Taxes1) High taxes help pay for services CA life, and who would leave beautiful CA

2) CA budget crisis can only be solved with higher taxes

PRO: CA Needs Less 1) Biz and ppl are leaving CA b/c of high taxes

2) Lower taxes would actually bring more tax revenue to the gov (Laffer)

Journ #56c, Title “Prop 13 Debate”11) Read the 2 sides, choose 1 side, and write which you choose and explain why.12) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Get Rid of Prop 13

1) If we can charge more than 1%, we can help our schools

2) At the very least, we should allow the 1% to be charged of the current value, not the value at the past point of sale.

PRO: Keep Prop 131) 1% tax is already really high for many home owners ($1mil house, means $10k a year)

2) Many seniors on fixed incomes can’t afford any higher taxes if you re-value their house

Notes #56a, Title: “Taxes Reform” 1) Progressive Tax: Tax that rate goes up with

earnings: Income Tax2) Marginal Tax Scale: Multi-level, rate goes up

after certain amount, prevents cheating3) Flat Tax: Simple same tax rate for everyone(Considered regressive b/c hurts poor more)

4) U.S. ClassLevels: Top 1/3: $65kTop 1/4: $80kTop 1/5: $90kTop 15%: $100kTop 10%: $120kTop 5%: $160kTop 1%: $400kTop 0.1%: $1.6m

Avg US: $54k

Journ #56d, Title “Rich v Poor Debate”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: 60% on Over $1mil

1) Those who make 80,000 a mo/2,700 a day can afford to pay 60% on every dollar over $1mil

2) These people benefited most from America, so they should give back to the poor who need help

PRO: Keep or Lower Highest Tax Brack. of 35%1) Rich already pay the majority of the nation’s (1% paying 40% of bills)

2) High taxes will discourage success and productivity, thus lower gov tax revenue (Laffer)

Journ #56e, Title “Flat Tax Debate”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: Keep our current

progressive tax1) Rich can afford to pay more

2) This hurt poor more since 20% of poor is more painful than 20% of a millionaire’s income

PRO: Create a 20% flat tax1) This is the most fair

2) This would make taxes far easier to collect, we could do away with deductions, and have a tax form that takes no lawyers, and is doable in 10 minutes

Review1) Corporate Income Tax: Approx 20% federal tax

on profits, CA: 8% taxPROGRESSIVE

2) Personal Income Tax: Approx 0-35% federal tax on income, CA: 0-9% state tax

PROGRESSIVE

3) Sales Income Tax: Tax on final point of saleFLAT

4) Europe: Valued Added Tax (VAT): Tax at each stage product is improved, Europe Avg: 20%

Journ #56f, Title “Nat Sales Tax Debate”1) Read the 2 sides, choose 1 side, and write which you choose and explain why.2) Then write down what your partner thinks (include their name at the end).1 2 3 4 5 CON: No federal sales tax

1) People would shop less, this would hurt jobs

2) This would hurt poor people since they don’t pay income tax, but would have to pay the sales tax

PRO: Create a 23% sales tax1) Encourages earning more money + savings

2) Easier to enforce, this would be better for the environment, since it reduces consumption

Journ #, Title “Video: Tax Reform”

1) Copy Source Title: A

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work SectionsTime Bookmark: 00:00

Homework: 1) Biz Plan due Tues 5/10