Government Expenses

-Government Services

-Government Employees

-Revenue Sources

60% to 80% come from taxes

Politics of Taxation

-all citizens of all governments paytaxes

-how much is enough???

-citizen revolts

Taxation Limits

-all tax bills must begin in House ofRepresentatives

-uniformity of taxes

-can’t tax interstate trade orexports

Taxation Principles

-Adam Smith

Wealth of Nations

-Based on Ability to Pay

-Progressive Tax-- Tax that isbased on the ability of a person topay and people who make moremoney pay a greater percentage

-Regressive Tax-- Tax that ispaid on an equal percentage byeveryone---can be unfair to thosewith less of a disposable income

Taxation Principles

-Adam Smith

Wealth of Nations

-Based on Ability to Pay

-Progressive Tax-- Tax that isbased on the ability of a person topay and people who make moremoney pay a greater percentage

-Regressive Tax-- Tax that ispaid on an equal percentage byeveryone---can be unfair to thosewith less of a disposable income

Income Taxes

-Personal Income Tax

-Provides most of Federal Revenue

-Taxes based on Taxable Income

Exemptions

Deductions

Tax Returns

-Corporate Income Tax

Property Taxes

-Property Tax

-Primary revenue for localgovernments

-Based on estimated value

-Stable source of revenue

Sales Taxes

-Sales Tax

-Most sales taxes go to stategovernment

-Easy to collect

-Sales Taxes are Regressive

-Excise taxes-- Tax that is placedupon certain items such as gas,alcohol, and cigarettes

Sales Taxes

-Sales Tax

-Most sales taxes go to stategovernment

-Easy to collect

-Sales Taxes are Regressive

-Excise taxes-- Tax that is placedupon certain items such as gas,alcohol, and cigarettes

Other Taxes

-Social Security Taxes

-Estate Taxes

-Gift Taxes

-Tariffs

Non-Tax Revenue

-Intergovernmental Revenue

-Selling Excess Land or Property

-Tolls

-Fines

-Fees, Licenses, Disposal, Permits

-Lotteries