Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
CH 9 TAXES
Transcript of CH 9 TAXES
ECONOMIC IMPACT OF TAXES
HOW DO TAXES AFFECT US?
CRITERIA FOR EFFECTIVE TAXES
ALL TAXES SHOULD BE FAIR TO EVERYONE
ALL TAXES SHOULD BE EASY TO UNDERSTAND
ALL TAXES SHOULD BE EASY TO COLLECT
TWO PRINCIPLES OF TAXATION
ABILITY TO PAY
1—Individual Income Tax
IRS (INTERNAL REVENUE SERVICE)
– IN CHARGE OF COLLECTING/AUDITING INCOME TAXES
2-- FICA -- FEDERAL INSURANCE CONTRIBUTIONS ACT
UP TO $106,800
(YOU STOP PAYING INTO IT)
3--Corp. Income Tax
Tax a corporations pays on its profits
4--OTHER FEDERAL TAXES
–Taxes levied for the use of a good or service
EXAMPLES--ENTRANCE TO A NATIONAL PARK OR MUSEUM
TAXES COLLECTED BY STATES
(FEDERAL REVENUE SOURCES)
(STATE REVENUE SOURCES)
HANDED DOWN FROM FEDERAL GOVERNMENT
(LOCAL GOVERNMENT REVENUE SOURCES)
TAXES COLLECTED BY LOCAL GOVERNMENTS
HANDED DOWN FROM STATE/FEDERAL
USED FOR EDUCATION/PUBLIC WELFARE
1--They can adjust our behavior.
2--They can affect our Productivity
LEVIED ON MOST PURCHASES
5 STATES DO NOT COLLECT
SIMPLE, EFFICIENT, CAN'T AVOID IT
--REGRESSIVE--HURTS THE POOR MORE THAN ANYONE
MOST STATES TAX THESE
4--STATE INCOME TAX
MOST STATES TAX INDIVIDUALS INCOMES
THESE RETURNS ARE ALSO DUE APRIL15TH
WATER, SEWAGE, ALCOHOL
ADDITION TO STATE SALES TAX
VARIES COUNTY TO COUNTY/CITY TO CITY.
Taxes can affect one’s incentive to work harder.
Some people think “Why work harder if it means I’ll be taxed more.”
Excise Tax on Gasoline
Using HOT LANES on INTERSTATES
ONLY pay the TAX if you BENEFIT
is an example
TAX paid based on how much $ you have.
More income=More tax.
EX. owning a home, electric cars, etc.
Discourage—Tax specific items like alcohol and cigarettes (called EXCISE TAXES or SIN TAXES)
CAPITAL GAINS COULD BE DIVIDENDS ON STOCK, PROFIT SELLING A HOUSE, INHERITANCES, ETC.
PAYROLL WITHHOLDING SYSTEM
– AUTOMATICALLY DEDUCTS TAXES FROM PAYCHECK
– MUST BE FILED BY INDIVIDUAL EACH YEAR BY APRIL 15TH
INCOME FOR RETIRED, DISABLED, ETC.
HEALTH CARE PROGRAM FOR SENIOR CITIZENS
“CORPORATIONS DON’T PAY TAXES, INDIVIDUALS DO”
The embedded tax!
– tax on the manufacture or sale of selected items
EXAMPLES--ALCOHOL, TOBACCO, GASOLINE
( S I N T A X E S )
–a tax on goods the government deemed a “Luxury”
EXAMPLES -- YACHTS, LUXURY CARS
– tax on the transfer of property when someone dies.
ONLY HIGH VALUE PROPERTY
– tax on donations of money or wealth paid by the person who makes the gift.
ANY GIFT OVER $13,000
– a tax levied on items brought into the country from other countries.
- ANY TANGIBLE PROPERTY OTHER THAN REAL
Ex. CARS, BOATS
—real estate, buildings, and anything permanently attached
Check out this information about excise taxes on Cigarettes
(S O C I A L I N S U R A N C E)
TAXES EARNINGS AND CAPITAL GAINS
FUNDS TRANSPORTATION, HEALTH CARE, HIGHER EDUCATION (COLLEGE) ETC.