Taxes

1
Taxes

• The only two sure things in life are death and
  taxes
• -Benjamin Franklin

The taxpayerthats someone who works for the
federal government but doesnt have to take the
civil service examination. -Ronald Regan
2
Tax Fairness

• In the United States, people are treated equally
  under the law. For example, people who have the
  same income should be taxed in the same way. Two
  principles of taxation relate to equal treatment
  in tax matters benefits received and the ability
  to pay.
• Regressive, progressive, and proportional taxes
  are examined and measured against the ability to
  pay _________ ___ ___________.

3
Benefits Received

• According to this principle, those who receive or
  benefit from ______ ________ should pay for it.
  People who use the toll road should pay the toll.
  People who use the park should pay the park fees.
  Some taxes work this way. It is not always easy
  to figure out the benefits different people
  receive from some public services, such as
  _________ _________.

4
Ability to Pay

• Some people have ______ _________ or more
  possessions than others. Under the ability to pay
  principle, these people pay more in taxes simply
  because they can afford to pay more.

5
Regressive Taxes

• Everyone pays ____ _____ _______.
• If everyone makes the same amount of money and
  receives the same benefits, this would be
  applicable for all forms of taxes.

6
Progressive Taxes

• People who ______ _____ _______, pay higher
  taxes.
• These are called Tax ___________

7
Tax Brackets over the years
8
Income Tax

• Levied by Federal, State and Local governments.
• This tax is ___________ based on Tax Brackets

9
Wealth and Income

• Tax Brackets are determined through Wealth and
  Income.
• Wealth Houses, Cars, Stocks, Savings
• Income Wages, _________

10
Tax Brackets

• Your tax bracket is used to estimate the amount
  of additional tax you'll pay if your income
  increases or the amount you'll save if you can
  ______ __ __________. If you're in the 25 tax
  bracket you can expect to pay about 250
  additional tax if you have 1,000 additional
  taxable income. In the 15 tax bracket, a 200
  deduction will save you about 30.

11
Proportional Taxes

• With a proportional or ______ _____, each
  individual or household pays a fixed rate. For
  example, low-income taxpayers would pay 10
  percent, middle-income taxpayers would pay 10
  percent, and high-income taxpayers would pay 10
  percent.

12
Sales Tax

• Proportional Tax imposed upon the sale and
  consumption of _____ ___ ________. It can be
  imposed either as a general tax on the retail
  price of all goods and services sold or as a tax
  on the sale of selected goods and services.
• Levied by ________.
• At 8, Cuyahoga County has the highest sales tax
  in Ohio

13
Federal Insurance Contribution Act (FICA)

• The current FICA tax rate is 15, half of which
  is paid by the _________ and half by the
  ________.
• These are _______ ___________.
• Pays for Federal programs. Most notably, Social
  Security and Medicare.
• Covers Old Age and Disability.

14
Selected Goods and Services

• _________
• Tobacco Products
• Alcohol
• Cars
• _______ _____

Regulated by the ____
Federal Segment Fees September 11th Security
Tax Travel Facilities Tax Etc. etc. etc.
15
Where the Federal Budget Comes From (2004)
Personal Income Taxes 43
Social Security, Medicare, and Unemployment and
other Retirement Taxes 35
Excise, Customs, Estate, Gift, and Miscellaneous
Taxes 7
Corporate Income Taxes 7
Borrowing to Cover Deficit 8
16
Where The Federal Budget Goes (2004)
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 Community Development 10
Net Interest on the Debt 8