TAXES

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TAXES

• NOTES

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I. Types of taxes

• A. Excise tax tax is included in price of
  product
• ex gasoline
• B. property tax tax on property
• 1. real property land or buildings
• 2. personal property movable objects (car,
  jewelry, etc..)
• C. property taxes are collected by local
  governments (county / city)
• 1. property taxes are used for local services
  (schools, police, parks, etc)
• D. sales tax tax on purchased products
• 1. In NC, its 7 cents on the dollar
• 2. sales tax is a state tax
• E. income tax tax on money earned
• 1. income tax is collected at both
• 2. the state and federal level (but not ALL
  states)
• 3. this is the 1 form of income for state of NC
  and federal govt
• F. luxury tax tax on luxury items (boats, cars,
  jewelry)
• G. inheritance tax tax on inherited items

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II. Progressive tax v. Regressive tax

• A. progressive a type of tax that affects
  higher income people more than lower income
• 1. income tax, luxury tax, property tax are
  examples
• B. Regressive tax - a tax that affects lower
  income people more than higher income
• 1. its a flat tax everyone pays the same (its
  just more of a burden to lower income people)
• 2. example is sales tax

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III. Other crap

• A. public good things provided by the govt
  through our tax dollars
• B. budget surplus this is money leftover after
  paying all expenditures
• C. budget deficit after expenditures, you still
  owe money (you in the hole)
• D. zoning property boundaries as it pertains to
  building
• E. annex extending city limits to include new
  neighborhoods
• 1.purpose is to increase city tax base

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IV. Who collects state and federal taxes

• A. federal taxes IRS (Internal Revenue Service)
• B. state taxes NC Department of Revenue

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V. Review Agencies

• A. FDIC Federal Deposit Insurance Corporation
  insures money in banks
• B. DEA Drug Enforcement Agency
• C. Others SEC, FBI, FDA, EPA, IRS, OSHA, FTC,
  CPSC