Transcript Regressive taxes

“Nothing is certain but
death and taxes”
What does this mean?
When do you think this
was said?
“Taxes and Budget”
A.
Art. I, Sec.8, Clause 1- First power given Congress
1.
2.
“power of the purse”
Used to run government
 "THOSE WHO
SURRENDER FREEDOM FOR SECURITY WILL
NOT HAVE, NOR DO THEY DESERVE, EITHER ONE."-Thomas
Jefferson
 “There is danger that, if the [Supreme Court] does not temper its
doctrinaire logic with a little practical wisdom, it will convert the
constitutional Bill of Rights into a suicide pact.”--Justice Robert H.
Jackson, dissenting in Terminiello v. City of Chicago (1949)
 What do the above quotations mean?
 Where can we apply these quotes in the modern
era?
 Do you agree or disagree with the quotes and
why?
 What is happening in the cartoon?
 What is the artist trying to convey?
 After we finish with the cartoons, take a
brief minute to draw your own short cartoon
on the bottom of your paper that represents
how you feel about the United States’
current economic situation:
B.
Limitations
1.
2.
No taxes on churches (1st Amendment)
Taxes used for public purposes only
C.
Early Taxes
1.
2.
3.
Duties, tax on goods coming in to country, main source of
gov’t money for early America
Direct tax- paid directly to the govt. by whom it is owed
(on person or property)
Indirect tax- on goods . Only imposed on transactions
from which one has the choice to engage in such
transactions (you don’t HAVE to buy a new Xbox360)
A.
Income tax
1.
2.
Allowed by 16th
Amendment
Progressive
income taxpercentage paid
goes up with
income
(determined by
“brackets”)
1992
15%
28%
31%
19932000
15%
2001
2002
20032011
$0 to
$8000
10%
10%
15%
15% to $32500
15%
28%
27.5%
27%
25%
to
$79000
31%
30.5%
30%
28%
to
$165000
36%
35.5%
35%
33%
to
$358000
39.6%
39.1%
38.6%
35%
and
above
1.
2.
3.
Do you think our progressive
tax system is fair? Why or
why not?
Do you think that poor
people are not paying enough
taxes or do you think the rich
need to pay more of their
share?
Do you think the government
does too much or too little in
helping the poor of this
country?
Single
Taxable
income is
over
But not
over
The tax is
Plus
Of the
amount
over
$0
8,500
$0.00
10%
$0
8,500
34,500
850.00
15%
8,500
34,500
83,600
4,750.00
25%
34,500
83,600
174,400
17,025.00
28%
83,600
174,400
379,150
42,449.00
33%
174,400
110,016.50
35%
379,150
379,150
Corporate income tax- extra tax on corporation profits
(corps. are treated as individuals)
4. Capital gains taxes- on stock market profits
3.
 -What is an entitlement program?
 -What are food stamps?
 -Why are food stamps considered an
“entitlement program”?
 -What are some positives and negatives of
food stamps?
 -Are food stamps a liberal or conservative
program? Why?
B.
Payroll taxes
1.
2.
Social Security- Money for retired and disabled
Medicare- healthcare for elderly
-What is the difference between
a progressive and regressive tax?
-Please give one example of
each.
-What do payroll taxes help to
fund in our government?
C.
Other
1.
Excise Taxes- taxes on goods and services
a.
b.
2.
Regressive taxes- percentage you pay goes down the more
money you make
Ex: gasoline, tobacco, telephone
Estate tax- tax on inheritances, but gifts up to $12000 are
tax free

-Progressive Tax

-Regressive Tax

-Duty (type of tax)

-Enumerated Power

-Delegated Power

-Reserved Power

-Implied Power

-Direct Tax

-Indirect tax

-Payroll Tax

-Entitlement Program

-Social Security

-Excise Tax

-Estate Tax

-Legislative Branch

-Executive Branch

-Judicial Branch

Supreme Court
-Constitution
-Charter
-Liberal
-Conservative
-Federalism
-Federalists
-Anti-Federalists
-Great Compromise
-NJ Plan
-Virginia Plan
-Bill of Rights
-Civil Liberties
-Rights of the Accused
-Democrat
-Republican
-Electoral College
-PAC
-Primaries and Caucuses
-General Election
Cabinet
Speaker of the House
Supreme Court
A.
President submits
1.
2.
Office of Management
and Budget (OMB)
Huge political statement
about priorities of gov’t
B.
Congress passes
1.
2.
Current annual budget is near
$4 trillion
Mandatory spending- money
that does not need to be
renewed each year
a.
3.
ex: social security, debt
payments
Discretionary spending- parts
of budget that can be raised or
lowered
a.
ex: EPA, education spending
What is this “DEBT CRISIS”?
The U.S. has around $16 trillion in outstanding debt
Who do we owe money to?
Most of it is held by us, and the bulge bracket banks here
at home: Goldman Sachs, JP Morgan, Citibank, and
Bank of America. $5 trillion Social Security. Others.
What about China?
Around 7.5 percent is held by China, the biggest foreign
holder of U.S. debt. So roughly $1 trillion is owed to
China.
 Who else do we owe money to?
 Who it is?!
 Why do we owe money to others?
 Two main ways
1. The US government spends money it does not have on all kinds of
projects and services such as wars, NASA, roads, buildings, salaries
of state employees, etc.
2. Secondly, it owes money when its people demand goods and
services which are provided by other countries and nationals. For
example, when the US (companies) imports oil, it has to pay for it
in US dollars, creating an outflow of money. This money is then in
the hands of foreigners who can use it to buy US products or, say,
gold from another country. As long as the money stays outside the
US it represents a debt which can be cashed one day or immediately.
C.
Budget breakdown
1.
2.
entitlement programs (social security, Medicare,
welfare): ~50% of budget Food Stamps
defense- 21%, interest on debt 9%
D.
Borrowing
1.
2.
Deficit- spending above revenue ($1.5 trillion)
total debt: $14 trillion, >$250 billion in interest
Review
1.
2.
3.
4.
5.
6.
In the early days of the American Republic, what
was the main source of government revenue?
What is a progressive tax? What is the current
main source of government revenue?
What are two programs payroll taxes pay for?
Why are sales or excise taxes considered
regressive? PLEASE PROVIDE EXAMPLE
(picture or explanation)
What is the difference between discretionary and
mandatory spending? Give an example of each.
What single item makes the biggest portion of
the federal budget? What makes the largest part
of the budget as a whole?
 -What type of tax disproportionally affects
people with lower incomes?
 -What governmental office helps the
president create the budget? Who actually
passes the budget after it is submitted?
 -What types of government programs take
up the greatest percentage of the federal
budget? What single program takes up the
greatest percentage?
“Government Bureaucracy”
Bureaucracy- large, complex administrative
structure that handles everyday business
B. Hierarchical authority, job specialization, formalized
rules, professional
C. Civil serviceA.
1.
2.
3.
lower level government employees
take a test
Not political
The universe is 15 billion years old, and the geological underpinnings of
the earth were formed long before the first sea creatures slithered out
of the slime. But it is only in the last 6,000 years or so that men have
descended into mines to chop and scratch at the earth's crust. Human
history is, as Carl Sagan put it, the equivalent of a few seconds in the 15
billion year life of the planet. What alarms those that keep track of the
earth's crust is that since 1950 human beings have managed to consume
more minerals than were mined in all previous history, a splurge of a
millisecond in geologic time that cannot be long repeated without
using up the finite riches of the earth.
Read the following question and select the correct answer. You may
answer the question as many times as you'd like.
Of the following, the main idea of the paragraph is:
a. There is true cause for concern at the escalating consumption of
the earth's minerals in recent years.
b. Human history is the equivalent of a few seconds in the 15 billion
year life of the earth.
c. The earth will soon run out of vital mineral resources.
d. The extraction of minerals from the earth's crust only began
about 6,000 years ago.
Between 1995 and 2000, the average price of a
house in Middlebury went up from $100,000
to $120,000. What was the percentage
increase in the average price of a house?
FACTS: Ann's office is two floors above Brenda's.
Brenda's office is one floor below the only woman
in the building whose birthday is today. Sally's
office is on the third floor. Ann's office is on the
fourth floor.
CONCLUSION: Today is Ann's birthday.
a. The facts prove the conclusion.
b. The facts disprove the conclusion.
c. The facts neither prove nor disprove the
conclusion.
D. Organized under the executive branch- President is the
chief administrator, appoints high level positions
A.
Executive Office of President
1.
2.
President’s closest advisors (his Administration)
Work in the White House, led by the Chief of Staff
3.
National Security Council- advise the pres. on security issues
a.
National Security advisor, VP, CIA director, Sec. of State, Sec of
Defense
B.
Executive Departments
1.
Cabinet- advisors and head of departments (15)
a.
b.
c.
2.
Appointed by the President, confirmed by the Senate
Ex: Department /Secretary of Homeland Security
Department of Justice (Attorney General)
Others: OMB, UN Ambassador
C.
Independent Agencies
1.
Independent Executive Agencies- president appoints
but operate independently
a.
Federal Emergency Management Administration (FEMA),
NASA, Environmental Protection Agency (EPA), Internal
Revenue Service (IRS)
2.
Independent Regulatory Commissions- independently
regulate aspects of economy
a.
Securities and Exchange Commission (SEC), National Labor
Relations Board (NLRB), BBB, FDA
3.
Government corporations- government-owned
enterprise that provides a service that could be done by
the private sector
a.
US Postal Service (USPS), Tennessee Valley Authority
(TVA), Fannie Mae, Freddie Mac, Peace Corps.
 You and a partner will choose cabinet position to
research.
 Once you have researched the position and found out
the basic information you will create a poster.
 The poster must include the following
 The Cabinet position
 Who currently is in the position
 What they oversee
 Color/Creativity
 Picture (Drawn)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Secretary of State
Natalie & Megan
Secretary of the Treasury
Dan & Avery
Secretary of Defense
Maggie & Annabelle
Attorney General
Raney & Kennedi
Secretary of the Interior
Ryan, Alston, & Ana
Secretary of Agriculture
Chris, Zach & Jordan
Secretary of Commerce
Noh & Sydney
Secretary of Labor
Mike
Secretary of Health and Human Services Kelsee & Victora
Secretary of Housing and Urban Development
Secretary of Transportation
Secretary of Energy
Secretary of Education
Secretary of Veterans' Affairs
Secretary of Homeland Security
Sharvil & Dylan
D.
Other Examples
1.
2.
3.
4.
5.
6.
Transportation Security Administration (TSA)
Federal Bureau of Investigation (FBI)
National Security Agency (NSA)
Drug Enforcement Agency (DEA)
Alcohol, Tobacco, and Firearms (ATF)
Central Intelligence Agency (CIA)
Center for Disease Control (CDC)
8. Better Business Bureau (BBB)
9. National Transportation Safety Board (NTSB)
10. Occupational Safety and Health Administration (OSHA)
11. Food and Drug Administration (FDA)
12. Federal Communications Commission (FCC)
7.