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Presentation on theme: "TAXES AND OTHER REVENUE. Taxation and its purposes ■ A tax is a charge levied by the government on persons or property to raise money to meet public needs."— Presentation transcript: 1 TAXES AND OTHER REVENUE
2 Taxation and its purposes ■ A tax is a charge levied by the government on persons or property to raise money to meet public needs. ■ However that is not the only purpose that government implements taxes for; the government also has protective tariffs and
excise taxes 3 Personal Income Tax
■Income taxes were legalized by the 16 th Amendment and are the Federal government’s largest source of revenue ■43% of the government’s tax revenue comes from personal income taxes ■Individuals pay income taxes at different percentages based upon what “tax bracket” they fall under ■Tax brackets range from 10% to 39.6%
4 Progressive Taxes ■A progressive tax is a tax that places a larger tax burden upon those with more wealth ■The personal income tax
is a type of progressive tax ■The more money a person makes, the higher the percentage of their income that is paid in taxes
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Payroll taxes ■Payroll taxes are taxes taken directly out of ones paycheck that fund social welfare programs such as Medicare, Social Security, and Unemployment benefits ■Payroll taxes are the Federal governments second largest source of tax revenue ■Payroll taxes are paid by both employees and employers ■For example, employees pay a 6.2% tax on each paycheck that their employer must match. If you are self employed, you must pay a 12.4% tax on your income!
6 Regressive Tax ■A regressive tax is a tax that,
while applied evenly regardless of income, places a larger tax burden upon the poor ■Sales taxes and Payroll taxes are an example of a regressive tax ■For example a man who makes $100,000 a year living in Virginia buying $4,000 worth of food per year would pay $60 per year on grocery taxes. While a man making $15,000 spending $4,000 per year on grocery taxes would spend the same amount, he is therefore paying a much higher percentage of his income on food taxes.
7 Corporation Income taxes ■Like people, businesses must also pay taxes, these are called Corporation income taxes, or corporate taxes. ■Like personal taxes, corporate taxes also function on as a progressive tax ■While corporations must pay between 15 and
35% taxes on their net income, there are many tax deductions available to corporations so their real tax rate may be much lower ■Corporate taxes account about 7% of Federal tax revenue and is the nations third largest revenue producer 8 Protective Tariffs ■ A protective tariff is a tax on imported goods designed to protect an industry within a nation - The united states currently has a 126% protective tariff on paper clips imported from China. As a result, the vast majority of paper clips used in the United States are made domestically
9 Excise Taxes ■Excise taxes are taxes placed on specific goods. While a sales tax may apply to all good or perhaps a particular set of goods (i.e. food) an excise tax is a tax put in place on specific items. ■These items are usually items that are viewed immoral, unhealthy, or luxurious. Common items include alcohol and
tobacco. ■The act of gambling may also carry an excise tax. ■ Lastly, luxury items, such as certain cars may carry a excise. For example, the taxes on Mercedes S might be taxed at a higher rate than a Honda Accord. ■Excise taxes are often referred to as “sin” taxes
10 Virginia Taxes ■Most states, like the federal government, rely on personal income taxes for a large
percentage of their revenue; however there are certain taxes that are unique to states ■Virginia is one one 45 states with a sales tax which applies to most items an individual buys. The standard tax rate for the Virginia tax rate is 5.3%. Groceries are only taxed at 2.5% while prepared food (restaurant food) may carry an additional “Food and beverage” tax as much as 6% by a locality ■Virginia also has excise (sin) taxes on tobacco and alcohol. Virginia's excise tax on tobacco is only about
$0.30 per pack while its beer tax is 5% on top of the 5.3% sales tax and the liquor tax can be as high as an additional 20% tax. When the government takes private property for public use it is called quizlet?Eminent domain is the power of the government to take private property belonging to its citizen's for public use, provided just compensation is paid to the owner. It can also be called "condemnation" or, in some states, "expropriation." A. Local, state and the federal government have the power of eminent domain.
What term refers to bringing charges against a government official?In impeachment proceedings, the House of Representatives charges an official of the federal government by approving, by simple majority vote, articles of impeachment.
Does Congress have the power to levy taxes?Article I, Section 8, Clause 1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; . . .
Which branch of government has the power to levy taxes quizlet?According to Article III of the United States Constitution, the United States Congress has the exclusive power to levy and collect taxes, borrow money, regulate interstate commerce, coin money and raise an army.
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A charge levied by government on persons or property to raise money to meet public needs
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