CHAPTER 9 Sources of Government Revenue
|
|
- Clare Butler
- 6 years ago
- Views:
Transcription
1 CHAPTER 9 Sources of Government Revenue Section 1, Chapter 9 1
2 2
3 ECONOMIC IMPACT OF TAXES Taxes affect the four factors of production land, labor, capital, and entrepreneurship. A tax placed on a good at the factory raises production costs. Taxes affect the economy by encouraging or discouraging certain activities. Section 1, Chapter 9 3
4 ECONOMIC IMPACT OF TAXES (continued) A sin tax is a highpercentage tax that raises revenue while reducing consumption of a socially undesirable product. Section 1, Chapter 9 4
5 ECONOMIC IMPACT OF TAXES (continued) Taxes affect productivity and economic growth by changing the incentives to save, invest, and work. Section 1, Chapter 9 5
6 6
7 ECONOMIC IMPACT OF TAXES (continued) The incidence of a tax is the final burden of the tax. It is easier for a producer to shift the incidence of a tax to the consumer if the demand is inelastic. Section 1, Chapter 9 7
8 ECONOMIC IMPACT OF TAXES (continued) The more elastic the demand, the more likely the producer will absorb a greater portion of the tax. Section 1, Chapter 9 8
9 9
10 TWO PRINCIPLES OF TAXATION The benefit principle states that those who benefit from government goods and services should pay in proportion to the amount of benefits they receive. Section 1, Chapter 9 10
11 TWO PRINCIPLES OF TAXATION (continued) The limitations of the benefit principle are that many government services provide the greatest benefit to those who can least afford them and that benefits are hard to measure. Section 1, Chapter 9 11
12 TWO PRINCIPLES OF TAXATION (continued) The ability-to-pay principle is the belief that people should be taxed according to their ability to pay, regardless of the benefits they receive. Section 1, Chapter 9 12
13 13
14 TWO PRINCIPLES OF TAXATION (continued) The ability-to-pay principle is based on two ideas: that societies cannot always measure the benefits derived from government spending, and that people with higher incomes suffer less discomfort in paying taxes than people with lower incomes. Section 1, Chapter 9 14
15 TYPES OF TAXES A proportional tax is one that imposes the same percentage on everyone, regardless of income. A progressive tax is one that imposes a higher percentage of tax on persons with higher incomes. Section 1, Chapter 9 15
16 16
17 TYPES OF TAXES (continued) A regressive tax is one that imposes a higher percentage on low incomes than on high incomes. Section 1, Chapter 9 17
18 INDIVIDUAL INCOME TAXES The federal government collects about 45 percent of its revenue from the individual income tax. Section 2, Chapter 9 18
19 INDIVIDUAL INCOME TAXES (continued) Taxes are typically withheld from individual s paychecks, with employers sending the taxes directly to the Internal Revenue Service. Section 2, Chapter 9 19
20 20
21 INDIVIDUAL INCOME TAXES (continued) Individuals file a tax return on or before April 15 each year. If taxes withheld are more than the taxes owed, the individual receives a refund. Section 2, Chapter 9 21
22 INDIVIDUAL INCOME TAXES (continued) If taxes withheld are less than the taxes owed, the individual makes a payment of the balance. Section 2, Chapter 9 22
23 INDIVIDUAL INCOME TAXES (continued) The individual income tax is a progressive tax because individuals earning higher incomes pay higher tax rates. Section 2, Chapter 9 23
24 24
25 FICA TAXES The Federal Insurance Contributions Act (FICA) tax pays for Social Security and Medicare. Section 2, Chapter 9 25
26 FICA TAXES (continued) FICA is the second largest source of government revenue after the individual income tax. The FICA tax is a regressive tax. Section 2, Chapter 9 26
27 27
28 CORPORATE INCOME TAXES Corporations pay a tax on their profits because they are considered legal entities. Corporate tax is the third largest source of government revenue. Section 2, Chapter 9 28
29 OTHER FEDERAL TAXES The excise tax is a regressive tax on the manufacture or sale of selected items. The estate tax deals with the transfer of property when a person dies. Section 2, Chapter 9 29
30 OTHER FEDERAL TAXES (continued) The gift tax is placed on large donations of money or wealth, and is paid by the donator. A customs duty is a charge levied on goods brought in from other countries. Section 2, Chapter 9 30
31 31
32 STATE GOVERNMENT REVENUE SOURCES Intergovernmental revenues are funds collected by one level of government that are distributed to another level. Intergovernmental revenues are the largest source of revenues for state and local governments. Section 3, Chapter 9 32
33 STATE GOVERNMENT REVENUE SOURCES (continued) A sales tax is one levied on consumer purchases for nearly all products. Employee retirement contributions make up the third largest source of income. Section 3, Chapter 9 33
34 STATE GOVERNMENT REVENUE SOURCES (continued) Individual state income tax revenues make up the fourth largest source of income. Section 3, Chapter 9 34
35 STATE GOVERNMENT REVENUE SOURCES (continued) Other sources of revenue for states include interest earnings on surplus funds; fees from state-owned colleges; corporate income taxes, and hospital fees. Section 3, Chapter 9 35
36 36
37 LOCAL GOVERNMENT REVENUE SOURCES Intergovernmental revenues are generally earmarked for education and public welfare; they make up the largest source of local government revenue. Section 3, Chapter 9 37
38 LOCAL GOVERNMENT REVENUE SOURCES (continued) Property taxes are levied on tangible and intangible products; they make up the second largest source of local government revenue. Local governments receive revenues from government-owned public utilities. Section 3, Chapter 9 38
39 LOCAL GOVERNMENT REVENUE SOURCES (continued) Some towns and cities have a sales tax, which is collected along with the state s sales tax. Other sources of local income include hospital fees, personal taxes, and public lotteries. Section 3, Chapter 9 39
40 40
41 THE VALUE-ADDED TAX A value-added tax (VAT) places a tax on the value that manufacturers add to a good at each stage of production. Section 4, Chapter 9 41
42 ADVANTAGES TO THE VALUE-ADDED TAX (VAT) The tax is levied on the total amount of sales less the cost of inputs. The incidence of the tax is widely spread among the manufacturers involved. Section 4, Chapter 9 42
43 43
44 ADVANTAGES TO THE VALUE-ADDED TAX (VAT) (continued) The Value-Added Tax (VAT) is easy to collect. The Value-Added Tax (VAT) would encourage people to save. Section 4, Chapter 9 44
45 DISADVANTAGES OF THE VALUE-ADDED TAX (VAT) Taxpayers are unlikely to notice increases in Value- Added Taxes. The Value-Added Taxes would compete with state sales taxes. Section 4, Chapter 9 45
46 46
47 THE FLAT TAX A flat tax is a proportional tax on individual income after a specified income threshold has been reached. Section 4, Chapter 9 47
48 ADVANTAGES OF THE FLAT TAX A flat tax would be simple to report. It would close or minimize tax loopholes. It reduces the need for tax accountants and much of the Internal Revenue Service (IRS). Section 4, Chapter 9 48
49 DISADVANTAGES OF THE FLAT TAX The flat tax benefits those with high incomes. The flat tax shifts policy away from the ability-topay principle. Section 4, Chapter 9 49
Chapter 9 Sources of Government Revenue
Chapter 9 Sources of Government Revenue Did You Know? To help the ailing yacht industry, which suffered great losses after the 1991 luxury tax was imposed, Representative Patrick J. Kennedy introduced
More informationEcon Ch. 9 Practice Test II
Econ Ch. 9 Practice Test II Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The incidence of a tax can more effectively be shifted from the supplier to
More informationChapter Introduction. of Taxation. and Local Revenue Systems. and Reforms. Visual Summary
Chapter Introduction Section 1: Section 2: Section 3: Visual Summary The Economics of Taxation Federal, State, and Local Revenue Systems Current Tax Issues and Reforms Economic Impact of Taxes (cont.)
More informationSources of Government Revenue. Taxes The Good the Bad and the Ugly
Sources of Government Revenue Taxes The Good the Bad and the Ugly 1. Resource Allocation Factors of Production are affected when a tax is levied. Taxes raise cost of production and shifts the supply curve
More information14-1: How Taxes Work NOTES
14-1: How Taxes Work NOTES Learning Target 1. I will demonstrate my understanding of the different types of taxes and what tax revenue is used for. Government Revenue Tax: a mandatory payment to a local,
More informationSources of Government Revenue. Taxes The Good the Bad and the Ugly
Sources of Government Revenue Taxes The Good the Bad and the Ugly 1. Resource Allocation Factors of Production are affected when a tax is levied. Taxes raise cost of production and shifts the supply curve
More informationUnit #3: The Government and the Economy
Copyright by The McGraw-Hill Companies, Inc. Chapter 9: Sources of Government Revenue Section #1: The Economics of Taxation I. Economic Impact of Taxes A. Resource Allocation What can happen to the factors
More informationAP Microeconomics Chapter 16 Outline
I. Learning objectives In this chapter students should learn: A. The main categories of government spending and the main sources of government revenue. B. The different philosophies regarding the distribution
More informationChapter 9 Test. Name: Class: Date: True/False Indicate whether the statement is true or false.
Name: Class: Date: ID: A Chapter 9 Test True/False Indicate whether the statement is true or false. 1. Supply and demand are used to predict the incidence of a tax. 2. The two principles of taxation are
More information4/5/2012. Chapter 16: Financing Government Section 1
Chapter 16: Financing Government Section 1 Objectives 1. Explain how the Constitution gives Congress the power to tax and places limits on that power. 2. Identify the most significant federal taxes collected
More informationThe Constitution gives Congress the power to tax.
WHAT ARE TAXES? WHAT GIVES THE MAN THE POWER TO COLLECT TAXES? The Constitution gives Congress the power to tax. WHAT ARE THE FOUR WAYS IN WHICH THE MAN S POWER TO TAX IS LIMITED? 1) Taxes cannot be used
More informationChapter 14 Section 2: Federal Taxes
Chapter 14 Section 2: Federal Taxes Objectives: o Objectives: Describe the process of paying individual income taxes o Identify: the basic characteristics of corporate income taxes. o Explain: the purpose
More informationWhat Are Taxes? Chapter 14 Section Main Menu
What Are Taxes? How are taxes used to fund government programs? What are three types of tax structures? What are the characteristics of a good tax? Who bears the burden of a tax? Funding Government Programs
More informationQuiz #1 Week 03/01/2009 to 03/07/2009
Quiz #1 Week 03/01/2009 to 03/07/2009 You have 25 minutes to answer the following 14 multiple choice questions. Record your answers in the bubble sheet. Your grade in this quiz will count for 1% of your
More informationChapter 14: Taxes and Government Spending Section 1
Chapter 14: Taxes and Government Spending Section 1 Objectives 1. Identify the sources of the government s authority to tax. 2. Describe types of tax bases and tax structures. 3. List the characteristics
More informationCASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc.
PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Prepared by: Fernando Quijano w/shelly 1 of Tefft 11 2 of 30 Public Finance: The Economics of Taxation 19 CHAPTER OUTLINE
More informationChapter 12 TAXES AND TAX POLICY Principles of Economics in Context (Goodwin et al.)
Chapter 12 TAXES AND TAX POLICY Principles of Economics in Context (Goodwin et al.) Chapter Summary This chapter starts out with a theory of taxes using the supply-and-demand model. Referring back to the
More informationChapter 12: Design of the Tax System. Historical Context
Chapter 12: Design of the Tax System Purpose: Address the tax system and how the U.S. government raises and spends money along with the difficulty of making a tax system both efficient and equitable. Quick
More informationWhy are there taxes? Main reason: to raise revenue for the government
Taxes and Taxation Why are there taxes? Main reason: to raise revenue for the government What are some other reasons for taxation? To encourage some kinds of economic activity (e.g., home ownership --
More informationTaxation-Overview (Chapter 18)
(Chapter 18) So far, we have talked about different government expenditure items: Education Social Security Health insurance Welfare programs How does local and federal governments finance such programs?
More informationHOW MUCH SHOULD THE FOLLOWING INDIVIDUALS PAY IN TAXES?
TAXES TAXES Taxes are required contributions, levied by the government on personal income and business profits or added to the cost of some goods, services, and transactions. Raise revenue to finance government
More informationDuring fiscal year 2004, the federal government
Preview Objectives After studying this section you will be able to: 1. Describe the process of paying individual income. 2. Explain the basic characteristics of corporate income. 3. Understand the purpose
More informationTopic# 3: General Theory of Taxation. Romanian tax system General theory of taxation PROF. ANDREEA STOIAN, PHD LECTURE 5
Topic# 3: General Theory of Taxation. Romanian tax system General theory of taxation PROF. ANDREEA STOIAN, PHD LECTURE 5 Content General theory of taxation Taxes Principles of taxation Tax base and tax
More informationPublic Finance: The Economics of Taxation. The Economics of Taxation. Taxes: Basic Concepts
C H A P T E R 16 Public Finance: The Economics of Taxation Prepared by: Fernando Quijano and Yvonn Quijano The Economics of Taxation The primary vehicle that the government uses to finance itself is taxation.
More informationChapter 6. Paying Taxes Pearson Education, Inc. All rights reserved
Chapter 6 Paying Taxes 2010 Pearson Education, Inc. All rights reserved Learning Objectives Describe the basic principles of taxation and the major categories of taxes. Explain payroll taxes Describe the
More informationThe BIG Idea UNIT 3 CHAPTER. All levels of government use tax revenue to provide essential goods and services.
CHAPTER 9 Sources of Government Revenue Why It Matters You have just received your first paycheck and are looking forward to being paid $8 per hour for the 20 hours you worked. You look at your check and...
More informationChapter 12. The Design of the Tax System. Introduction. Introduction. In this chapter, look for the answers to these questions:
Chapter 12. The Design of the Tax System Introduction One of the Ten Principles from Chapter 1: A government can sometimes improve market outcomes. providing public goods regulating use of common resources
More informationREFORMING CHARITABLE TAX INCENTIVES: ASSESSING EVIDENCE AND POLICY OPTIONS
REFORMING CHARITABLE TAX INCENTIVES: ASSESSING EVIDENCE AND POLICY OPTIONS Joseph Rosenberg and Eugene Steuerle November 15, 2018 The federal tax treatment of charitable giving and the nonprofit sector
More informationPersonal Finance G
Personal Finance 1.13.1.G Almost 31% of an individual s paycheck is deducted Taxes are the largest expense most individuals will have Therefore, it is important to understand the systematic deductions
More informationChapter 8 Income Distribution. Part II
Chapter 8 Income Distribution Part II In a nutshell so far.. 1. Factors that determine wages Risk taking Ability Wealth 2. In Canada, poverty is usually defined in relation to the average Canadian income
More informationMICROECONOMICS - CLUTCH CH. 6 - INTRODUCTION TO TAXES AND SUBSIDIES
!! www.clutchprep.com CONCEPT: INTRODUCING TAXES AND TAX INCIDENCE Taxes allow the government to provide public services. Taxes can either be imposed on the buyer or the seller of a good. The tax shifts
More informationUnit 6 The Role of Government in the Economy
Macroeconomics Unit 6 The Role of Government in the Economy Government Spending Governments undertake projects for the public good, such as this road construction project. They raise the necessary funds
More informationUnit 4, Activity 1, Domestic Policy Vocabulary
Unit 4, Activity 1, Domestic Policy Vocabulary Word + - Example Definition domestic policy revenue expenditures taxation benefits received principle ability to pay principle progressive tax proportional
More informationSample Exam Questions/Chapter 7
Sample Exam Questions/Chapter 7 1. A tax of $20 on an income of $200, $40 on an income of $300, and $80 on an income of $400 is: A) progressive. B) proportional. C) regressive. D) constant-rate. 2. A tax
More informationA Primer on New Mexico s Tax System
A Primer on New Mexico s Tax System How it works, why it matters For: Albuquerque Interfaith Economic Summit March 28-29, 2008 All state services are funded by taxes Including: K-12 Education, Higher Education,
More informationAGENDA Thurs 1/7/16 QOD #2: Fiscalville Taxes HW Review (CH16 Q #1-6) Ch 16: Government Finance Partner Practice (Handout/P #3) Spring Syllabus
AGENDA Thurs 1/7/16 QOD #2: Fiscalville Taxes HW Review (CH16 Q #1-6) Ch 16: Government Finance artner ractice (Handout/ #3) Spring Syllabus notification/google Form HW: Read pp 357-369 Q#1-3 & 8-10 QOD
More informationUnit 1 Test Review Chapters 1 & 2 Introduction to Economics
Unit 1 Test Review Chapters 1 & 2 Introduction to Economics Scarcity is the fundamental problem of economics. Land, labor, capital, entrepreneurs are the four factors of production. Actions in one part
More informationHow Government Collects. While governments receive revenue from a variety of sources, the most important source is taxes.
Have you wondered or questioned why the paychecks you ve seen have so many deductions? In Chapter 9, you will learn more about taxes and revenues raised by all levels of government. To learn about the
More informationPERSONAL INCOME TAXES
PERSONAL INCOME TAXES CHAPTER 35 WHERE PERSONAL INCOME TAXES FIT In 2008 the federal government collected $2,524 billion in taxes. $1,146 billion of that was collected from the personal income tax. The
More informationRevenue & Expenditures
Revenue & Expenditures Ch. 8 in text 1 Revenue: Five basic sources Taxes & Other Compulsory Revenue Taxes, licenses, mandatory fees Gifts & Donations Solicited through fund-raising or unsolicited Earned
More informationRecitation #6 Week 02/15/2009 to 02/21/2009. Chapter 7 - Taxes
Recitation #6 Week 02/15/2009 to 02/21/2009 Chapter 7 - Taxes Exercise 1. The government wishes to limit the quantity of alcoholic beverages sold and therefore is considering the imposition of an excise
More informationDef: Tax is a levy charged by the government on individuals and companies to finance government expenditure.
Chap 12 Taxation Def: Tax is a levy charged by the government on individuals and companies to finance government expenditure. The main taxes paid by households The PAYE system. Employers deduct the tax
More informationFederal, State, and Local Taxes in NYS. Counties TAXES IN NYS. April Fire districts 1% Villages 2% Library 1% Towns 7% Cities (w/nyc) 18%
TAXES IN NYS Library 1% Fire districts 1% Villages 2% Towns 7% Cities (w/nyc) 18% School Districts 62% Counties 9% Chart Includes NYC Federal, State, and Local Taxes in NYS April 2018 HON. MARYELLEN ODELL
More information1. STUDENTS WILL BE ABLE TO DEFINE WHAT A TAX IS AND EXPLAIN WHY WE MUST HAVE TAXES
LIGHTHOUSE CPA SOCIAL SCIENCES DEPARTMENT AP ECONOMICS STUDY GUIDE # 17 - TAXES & GOVERNMENT SPENDING CHAPTER LEARNING OBJECTIVES STUDENTS WILL BE ABLE TO DEFINE WHAT A TAX IS AND EXPLAIN WHY WE MUST HAVE
More informationUnderstanding Taxes. and understanding your paycheck!
Understanding Taxes and understanding your paycheck! Summarize the purpose of paying taxes. Recognize the parts of a paystub. Differentiate between net and gross income. Explain what W-2 and W-4 forms
More informationThe Amount Of Federal Income Tax Withheld From An Employee's Gross Pay Is Recorded As An
The Amount Of Federal Income Tax Withheld From An Employee's Gross Pay Is Recorded As An Deductions from gross pay in the payroll register are reflected on the credit side of the for the amount of federal
More informationChapter 3: American Free Enterprise Section 4
Chapter 3: American Free Enterprise Section 4 Objectives 1. Explain the U.S. political debate on ways to fight poverty. 2. Identify the main programs through which the government redistributes income.
More informationCHAPTER 1 Introduction to Taxation
CHAPTER 1 Introduction to Taxation CHAPTER HIGHLIGHTS A proper analysis of the United States tax system begins with an examination of the tax structure and types of taxes employed in the United States.
More informationExecutive Compensation
Executive Compensation Bulletin IRS Issues Two Final Rules With Implications for High-Income Taxpayers Russ Hall and Steve Seelig, Towers Watson January 13, 2014 Recently, the Internal Revenue Service
More informationThe Better Way Tax Plan
BRIEF ANALYSIS NO. 120 AUGUST 8, 2017 The Better Way Tax Plan The Better Way tax reform plan would bring jobs home, raise productivity and wages, and make the personal income tax fairer. Laurence J. Kotlikoff
More informationLooking Back on 2018
Year-end Planning 2018 Looking Back on 2018 As 2018 draws to a close, there is still time to reduce your 2018 tax bill and plan ahead for 2019. This letter highlights several potential year-end planning
More informationSubmission on April 29, to the. President's Advisory Panel on Federal Tax Reform. E. Martin Davidoff, CPA, Esq. Individually
Submission on to the President's Advisory Panel on Federal Tax Reform by E. Martin Davidoff, CPA, Esq. Individually Contact Information E. Martin Davidoff, CPA, Esq. E. Martin Davidoff & Associates Certified
More informationTHE MERITS OF A VALUE-ADDEDA TAX IN EGYPT. Omneia Helmy
THE MERITS OF A VALUE-ADDEDA TAX IN EGYPT Omneia Helmy 18 November, 2013 Securing revenue is much-needed to: contain the high and increasing budget deficit in Egypt LE billion % 300 16 250 200 150 100
More informationA tax is:,, and taxes account for. For many workers, are their single annual. expense, even more than, shelter, transportation,
Taxes Guided Notes: What are Taxes: A tax is:.,, and taxes account for more than 35% of the average families expenses. For many workers, are their single annual expense, even more than, shelter, transportation,,
More informationTax and fairness. Background Paper for Session 2 of the Tax Working Group
Tax and fairness Background Paper for Session 2 of the Tax Working Group This paper contains advice that has been prepared by the Tax Working Group Secretariat for consideration by the Tax Working Group.
More informationGiving Today to Guarantee Tomorrow: A Lesson in Charitable Giving
Giving Today to Guarantee Tomorrow: A Lesson in Charitable Giving A careful review of the various ways to structure charitable gifts can help make your gifts more meaningful, both to you and to the charities
More informationA Consumer s Guide to
A Consumer s Guide to 401(k) Plans NYSUT Member Benefits wants NYSUT members to be the best-informed consumers in the state. This Consumer Guide is one of our contributions towards achieving that goal.
More informationPractice Questions and Answers from Lesson I-8: Taxes. Practice Questions and Answers from Lesson I-8: Taxes
Practice Questions and Answers from Lesson I-8: Taxes The following questions practice these skills: Compute the effects of an excise tax on price, quantity, and tax revenue. Show how the tax burden is
More informationShould Feminine Hygiene Products Be Exempt from Sales Tax? The Colorado State House proposes Bill HB ( The Bill ) exempting feminine
Lane Ginsbern Applied Economic Analysis Should Feminine Hygiene Products Be Exempt from Sales Tax? The Colorado State House proposes Bill HB17-1127 ( The Bill ) exempting feminine hygiene products from
More informationDIVISION - I. 2. Basic Concepts of Excise Duty Basic Concepts of Customs Duty Basic Concepts of VAT Basic Concepts of CST 146
Contents DIVISION - I 1. Basic Concepts of Indirect Taxes 1 2. Basic Concepts of Excise Duty 11 3. Basic Concepts of Customs Duty 63 4. Basic Concepts of VAT 101 5. Basic Concepts of CST 146 DIVISION -
More informationCHAPTER 17: PUBLIC CHOICE THEORY AND THE ECONOMICS OF TAXATION
CHAPTER 17: PUBLIC CHOICE THEORY AND THE ECONOMICS OF TAXATION Introduction As we have seen, government plays an important role in addressing market failures. But it also plays a significant role in taxation
More informationMicroeconomics. The Design of the Tax System. Introduction. In this chapter, look for the answers to these questions: N.
C H A P T E R 12 The Design of the Tax System P R I N C I P L E S O F Microeconomics N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2010 South-Western, a part of Cengage Learning, all rights
More informationINTRODUCTION TAXES: EQUITY VS. EFFICIENCY WEALTH PERSONAL INCOME THE LORENZ CURVE THE SIZE DISTRIBUTION OF INCOME
INTRODUCTION Taxes affect production as well as distribution. This creates a potential tradeoff between the goal of equity and the goal of efficiency. The chapter focuses on the following questions: How
More informationInternational Tax. Environments. Chapter Outline. Tax Neutrality INTERNATIONAL INTERNATIONAL FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT
INTERNATIONAL FINANCIAL MANAGEMENT Fourth Edition EUN / RESNICK International Tax Environment 21 Chapter Twenty-one INTERNATIONAL Chapter Objective: FINANCIAL MANAGEMENT This chapter provides a brief introduction
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 5: Fiscal and Supply Side Policies 5.1 Fiscal policy Notes Fiscal policy involves the manipulation of government spending, taxation and the budget balance. It
More informationUnited States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform
from Global Mobility United States: Summary of key 2017 and 2018 federal tax rates and limits many changes after tax reform March 27, 2018 In brief The following is a high-level summary of some key individual
More informationCIE Economics AS-level
CIE Economics AS-level Topic 3: Government Microeconomic Intervention b) Taxes (direct and indirect) Notes Direct Taxes Direct taxes are paid directly to the government from the tax payer. Examples include
More informationWays to Offset Regressive Impact of Consumption Tax Hikes
Legal and Tax Report 26 June 2012 (No. of pages: 11) Ways to Offset Regressive Impact of Consumption Tax Hikes On the regressive impact of consumption tax, refundable tax credits, and tax rate reductions
More informationCRS Report for Congress Received through the CRS Web
Order Code RS20119 Updated September 15, 2000 CRS Report for Congress Received through the CRS Web Telephone Excise Tax Louis Alan Talley Specialist in Taxation Government and Finance Division Summary
More informationYear-end Tax Planning Letter
December 2011 Year-end Tax Planning Letter To Our Clients and Friends: As we approach year end, it s again time to focus on last-minute tax planning changes that you might want to consider to benefit you
More informationChapter 25: Local Government and Finance Section 4
Chapter 25: Local Government and Finance Section 4 Objectives 1. Describe the major Federal and State limits on raising revenue. 2. List the four principles of sound taxation. 3. Identify major tax and
More informationApplication: The Costs of Taxation
8 Application: The Costs of Taxation PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Deadweight Loss of Taxation Tax on a good levied on buyers Demand curve shifts leftward
More informationFlat Tax vs. Fair Tax
The Flat Income Tax and the FairTax Consumption Tax A Comparison of Federal Taxation Proposals Flat Tax vs. Fair Tax Fair Tax Flat Tax 21 Is still an income tax Eliminates $250 mil. Income tax industry
More informationAt the end of Class 20, you will be able to answer the following:
1 Objectives for Class 20: The Tax System At the end of Class 20, you will be able to answer the following: 1. What are the main taxes collected at each level of government? 2. How do American taxes as
More informationSUMMARY AND ANALYSIS OF THE TAX CUTS AND JOBS ACT AS APPROVED BY THE SENATE DECEMBER 4, 2017 FEEDING AMERICA TAX AND FISCAL POLICY PRINCIPLES
SUMMARY AND ANALYSIS OF THE TAX CUTS AND JOBS ACT AS APPROVED BY THE SENATE DECEMBER 4, 2017 The Tax Cuts and Jobs Act approved by the Senate Finance Committee on November 16 would reduce the taxes paid
More informationModeling the Estate Tax Proposals of 2016
FISCAL FACT No. 513 Jun. 2016 Modeling the Estate Tax Proposals of 2016 By Alan Cole Economist Key Findings: Several lawmakers and presidential candidates in 2016 have proposed changes to the federal estate
More informationFunding the Public Sector
6 Funding the Public Sector Learning Objectives After you have studied this chapter, you should be able to 1. define marginal and average tax rates, proportional, progressive, and regressive taxation,
More informationWisconsin Budget Toolkit
Wisconsin Budget Toolkit INTRODUCTION Updated January 2016 Countless times a day, you are affected by state budget decisions. When you turn on the water, send your child to school, turn on a light, or
More informationChapter 10 The Government in the Economy: Taxation and Regulation
Chapter 10 The Government in the Economy: Taxation and Chapter Outline 10. 10. 10. 10. 10. 1. Taxation and Government Spending in the United States 2. 3. Government Failures 4. Equity versus Efficiency
More informationHOUSE TAX REFORM BILL SUMMARY
HOUSE TAX REFORM BILL SUMMARY Section Bill Proposal Current Law Proposed Change Notes 1002 1306 Enhancement of standard deduction Charitable Contributions The standard deduction is $6,350 for single individuals
More informationChapter 01 Introduction to Taxation, the Income Tax Formula, and Form 1040EZ
Chapter 01 Introduction to Taxation, the Income Tax Formula, and Form 1040EZ True / False Questions 1. The U.S. individual income tax system is an example of a progressive tax rate structure. 2. A proportional
More informationChapter 14 Section 1: What are taxes?
Chapter 14 Section 1: What are taxes? Tell us therefore, What thinkest thou? Is it lawful to give tribute unto Caesar, or not? But Jesus perceived their wickedness, and said, Why tempt ye me, ye hypocrites?
More informationOCR Economics AS-level
OCR Economics AS-level Macroeconomics Topic 3: Application of Policy Instruments 3.1 Fiscal policy Notes The government budget: The government budget is comprised of tax revenues and government expenditure.
More informationThe Congress, the President, and the Budget: The Politics of Taxing and Spending
The Congress, the President, and the Budget: The Politics of Taxing and Spending National Debt, Budget Deficits and Surpluses How much money the government owes. http://zfacts.com/p/461.html Deficit: expenditures
More informationEdexcel Economics AS-level
Edexcel Economics AS-level Unit 1: Markets in Action Topic 4: Price Determination 4.4 Indirect taxes and subsidies Notes Indirect Taxes Indirect taxes are imposed by the government and they increase production
More informationNAME: CLASS PERIOD: What Are All These Deductions from My Paycheck?
7.1 NAME: CLASS PERIOD: What Are All These Deductions from My Paycheck? It's exciting to receive your first paycheck. But for many young people, that first rush of excitement soon yields to disappointment.
More informationEQ: What is Price Elasticity of Supply?
EQ: What is Price Elasticity of Supply? Price Elasticity of Supply (ES) is a characteristic of a product describing: The degree of change in quantity supplied by producers when there is a change in price.
More informationThe efficient outcome is the one which maximizes total surplus. Suppose a little less than half the people in a town would benefit enormously from a
Review for final Chapter 9 - political economy 1. What is a social preference? What is a social preference rule? What are the properties of consistent social preferences? Define each property. A social
More informationBusiness Ownership and Operations
Chapter 6 Business Ownership and Operations Section 6.1 Types of Business Ownership Read to Learn Describe the advantages and disadvantages of the three major forms of business organizations. Describe
More informationECON 1100 Global Economics (Fall 2013) The Distribution Function of Government portions for Exam 4
ECON 1100 Global Economics (Fall 2013) The Distribution Function of Government portions for Exam 4 Relevant Readings from the Required Textbooks: Economics Chapter 12, Income Distribution and Poverty Problems
More informationUsing Your Assets to Promote your Values. Lawrence M. Lehmann, JD, AEP, CAP Lehmann Norman & Marcus LC
Using Your Assets to Promote your Values, JD, AEP, CAP Lehmann Norman & Marcus LC Charitable Motivation. The primary reason for charitable giving comes from the human heart. Unless the spark of philanthropy
More informationOCR Economics A-level
OCR Economics A-level Macroeconomics Topic 3: Application of Policy Instruments 3.1 Fiscal policy Notes The government budget: The government budget is comprised of tax revenues and government expenditure.
More informationAQA Economics AS-level
AQA Economics AS-level Macroeconomics Topic 4: Macroeconomic Policy 4.2 Fiscal policy Notes Fiscal policy involves the manipulation of government spending, taxation and the budget balance. It can have
More informationNAME: CLASS PERIOD: What Are All These Deductions from My Paycheck?
7.1 NAME: CLASS PERIOD: What Are All These Deductions from My Paycheck? It's exciting to receive your first paycheck. But for many young people, that first rush of excitement soon yields to disappointment.
More informationQuestions and Answers on Additional Medicare Tax
Brought to you by Crest Insurance Group, LLC Questions and Answers on Additional Medicare Tax The Affordable Care Act (ACA) increases the Medicare hospital insurance tax rate for high-income individuals
More informationHow Progressive is the U.S. (Federal) Tax System?
How Progressive is the U.S. (Federal) Tax System? Data is for 1999 or 2002 depending on the series First, some Definitions Regressive Tax System: Proportional Tax System: Progressive Tax System: A 1 st
More informationBefore we get to specific suggestions, here are two important considerations to keep in mind.
To Our Clients and Friends As we get closer to the end of yet another year, it s time to tie up the loose ends and implement tax saving strategies. With the fate of many of the long favored tax breaks
More informationThe Economics of Public Policy 11. Tax Incidence and the Excess Burden of Taxation
Fletcher School of Law and Diplomacy, Tufts University The Economics of Public Policy 11. Tax Incidence and the Excess Burden of Taxation Prof George Alogoskoufis Determining Tax Incidence The goal of
More informationAustria Individual Taxation
Introduction Individuals are subject to national income tax. There are no local income taxes. After 1 August 2008, inheritance and gift tax is no longer levied. Social security contributions are also levied.
More informationChapter 14: Taxes and Government Spending Section 4
Chapter 14: Taxes and Government Spending Section 4 Objectives 1. Explain how states use a budget to plan their spending. 2. Identify where state taxes are spent. 3. List the major sources of state tax
More information