Sec 1 What are Taxes? STGs: Understand, explain, analyze,
identify 1.How govt uses taxes to pay for programs 2.The roots of
the concept of taxation in the U.S. Constitution & the U.S.
Supreme Court 3.Types of tax bases and structures 4.Characteristics
of a good tax 5.Who bears the tax burden
Slide 3
Where does it come from? Where does govt get the money to pay
for programs? Where do taxes come from? So, in the end, who pays
for the programs offered by the govt?
Slide 4
TAXES & The Constitution Q: Does government have the
authority to tax you? A: YES. Q: Where? A:
Slide 5
Tax Bases What can be taxed? P I G S Methods: Individual income
tax Sales tax Property tax Corporate income tax
Slide 6
Types of Tax Structures pg 360, Figure 14.1 Type of
TaxDescriptionMethodExample #1 Rons taxes on $50,000 income Example
#2 Marys taxes on $150,000 income ProportionalFlat Tax
ProgressiveIncome Tax RegressiveSales Tax
Slide 7
Characteristics of a Good Tax 1.S 2.E 3.C 4.E
Slide 8
Sec 2 Federal Taxes STGs: Understand, explain, analyze,
identify 1.The process of paying individual income taxes 2.The
basic characteristics of corporate income taxes 3.The purpose of
Social Security, Medicare and unemployment taxes 4.Other types of
taxes
Slide 9
How does govt know how much you owe for taxes? How does the
process work? 1.Withholding taxes 2.Pay as You Go 3.File a Tax
Return 4.Tax Bracket
Slide 10
Basic characteristics of corporate income taxes Progressive Tax
Rate Corporations have many deductions (more than individuals) that
reduce their taxable income.
Slide 11
The purpose of Social Security, Medicare and unemployment taxes
Tax/ProgramSourcePurpose Social SecurityFICA based on your income
MedicareFICA Unemployment TaxBased on your income. You cant collect
it IF you dont pay into this fund.
Slide 12
Other types of taxes Type of TaxExplanation/Example 1. 2. 3. 4.
5.
Slide 13
Sec 3 Federal Spending STGs: Understand, explain, analyze,
identify 1.Difference between mandatory and discretionary spending
2.Major entitlement programs 3.Categories of discretionary spending
4.Impact of federal aid to state and local governments
Slide 14
Difference between mandatory and discretionary spending
Spending TypeDefineExamples (Pg 371, Figure 14.6) List all
Mandatory Spending Discretionary Spending Which one is
Required?
Slide 15
Major entitlement programs Pg 372 Are these Discretionary or
Mandatory? Why are such programs called Entitlement Programs?
Entitlement Programs are Means-Tested. What does that mean? Can
these types of programs be cut easily? Why or why not?
Slide 16
Categories of Discretionary Spending Pg 371, Figure 14.6 Pie
Chart and Pgs 373-74. List the 3 largest types/categories of
Discretionary Spending 1. 2. 3.
Slide 17
Impact of federal aid to state and local governments List 6
areas/programs where State Govts receive aid/money from the Federal
Govt: 1. 2. 3. 4. 5. 6.
Slide 18
Sec 4 State and Local Taxes & Spending STGs: Understand,
explain, analyze, identify 1.How states use a budget to plan
spending 2.Where state taxes are spent 3.The major sources of state
tax revenue 4.Local government spending and sources of revenue
Slide 19
How states use a budget to plan spending Budget
TypeEExplanation Operating Budget Capital Budget
Slide 20
Where state taxes are spent 1. P 2. H 3. E 4. A 5. A 6. W
Slide 21
State Tax Revenue What CANT be taxed? 1. 2. 3. 4. What IS
taxed? 1.S 2.State I 3.C 4.Other: 1.Savings accounts 2.Inheritance
3.Car Registration 4.Dog License AND MORE
Slide 22
Pg 379, Figure 14.8. List the 5 largest of each. LOCAL GOVT
REVENUE SOURCES AND SPENDING REVENUE SOURCESSPENDING