Transcript Taxes

Seminar: Timely Topics for
Today’s Business World
Mr. Bernstein
Taxes
January 2017
Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Reasons for Taxes
Raise revenues to fund government programs
Regulate and influence business and personal activity
Fiscal policy – affect economic growth rates
“Sin taxes” (ie alcohol, tobacco)
Tax rate reductions to encourage desirable ventures
(ie, energy policy)
Influential special interests and donations to
politicians
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Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Types of Taxes that Affect Personal Finance
Sales tax
Find the sales tax rate in the following states:
NJ_____NY_____PA_____DE_____
Excise Tax
Gas tax, phone tax, airline ticket tax, etc.
Sin Tax: Alcohol, tobacco, etc.
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Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Types of Taxes that Affect Personal Finance
Property Tax
Primarily collected by local governments
Estate Tax
Federal tax…states may also collect
inheritance tax
Gift Tax
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Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Income Tax
Primary source of revenue for Federal government
Tax on wages, salaries, self-employed earnings,
dividends, interest, capital gains, royalties and
other sources of income
The IRS was established in 1862 and
is responsible for collecting
federal income tax
More tax revenues please
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Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Tax Freedom Day
The price of running our government and the
entitlements it awards
For New Jersey resident, Tax Freedom Day in 2016
was May 12…day 132
What types of taxes are used in
calculating Tax Freedom Day?
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Seminar: Timely Topics for Today’s
Business World
Mr. Bernstein
Fairness and Taxation – what is a “Fair Share”?
Flat Tax - one rate, regardless of income level
No tax breaks for charity, home mortgage, etc.
Progressive Tax – rates are higher for higher earners
Regressive Tax – rates are higher for lower earners
Where do you think tax rates will go in the future?
Where do you think tax rates should go in the future?
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