…the Legislature shall not levy, authorize or otherwise permit any state or local tax upon

payroll or earned personal income or any state or local tax measured by payroll or earned

personal income…

Tennessee Amendment 3

Result Votes Percentage

a Yes 882259 66.22%

No 450066 33.78%

Yet, 70% would pay less with a state income tax in Tennessee.

TN voter turnout: 29.1%

Benefits received: 21.4 cents per gallon in Tennessee for road

construction. Raises $657,000,000 for road construction.

Budgets and Taxes

Federal Government

1. What is the current size of the US federal government’s debt (aka national debt)?

A. $17.985 quadrillionB. $17.985 trillionC. $17.985 billionD. $17.985 million

2. This year alone, the federal government will add what amount to the national debt?

A. $483 TrillionB. $483 BillionC. $483 MillionD. $483 Thousand

3. What percentage of the federal government’s total tax revenue (income) does the top 10% of American wage earners provide?

A. 70%B. 50%C. 30%D. 10%

4. What percentage of the federal government’s tax revenue does the bottom 50% of US wage earners provide?

A. 80%B. 50%C. 20%D. 2%

5. Federal Budget 2012: Which is the single largest expenditure?A. Entitlements (Social Security, Medicare, Medicaid)B. Defense/MilitaryC. Interest on our large national debtD. Governmental programs: crime fighting, highways, nat’l

parks, education, regulatory agencies such as the EPA and FDA; funding for the arts, NASA, etc.

57%25%15%13%

6. Largest source of Federal Tax Revenue

- Corporate income tax- Personal income tax- Excise tax- Estate taxes- Customs duties

7. Where does largest % of TN tax revenue go?

-Police/prisons-Tenncare and welfare-Roads-Education

8. What is largest source of TN Tax Revenue?

-Excise tax-Sales tax-Inheritance tax-Alcohol and tobacco tax

9. Where does largest % of Metro Nashville Money Go?

-Police/Fire protection-Education-Parks and Recreation-General Services (trash collection, etc)-Streets/roads

10. Largest source of Metro Tax Revenue

- Sales Tax- State and Federal Grants- Property Tax

1. What is the current size of the US federal government’s debt (aka national debt)?

A. $17.985 quadrillionB. $17.985 trillionC. $17.985 billionD. $17.985 million

B. $17.985 Trillion

2. This year alone, the federal government will add what amount to the national debt?

A. $483 TrillionB. $483 BillionC. $483 MillionD. $483 Thousand

B. $483 Billion

3. What percentage of the federal government’s total tax revenue (income) does the top 10% of American wage earners provide?

A. 70%B. 50%C. 30%D. 10%

A. 70%

4. What percentage of the federal government’s tax revenue does the bottom 50% of US wage earners provide?

A. 80%B. 50%C. 20%D. 2%

D. 2%

Percentiles Ranked by AGI AGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid

Top 1% $343,927 36.73

Top 5% $154,643 58.66

Top 10% $112,124 70.47

Top 25% $66,193 87.30

Top 50% $32,396 97.75

Bottom 50% <$32,396 2.25

Note: AGI is Adjusted Gross IncomeSource: Internal Revenue Service

Entitlements (57%)Defense (25%)Everything Else (15%)Interest on National Debt (13%)

5. Federal Spending:

57%25%15%13%

$2.57 Trillion income - $3.83 Trillion spent= $1.26 Trillion deficit in 2011

Defense: $895 BillionSocial Security: $730 BillionMedicare: $491 BillionMedicaid: $297 BillionInterest on the Debt: $251 BillionEverything else: $520 Billion

6. Sources of Federal Revenue

1. Income tax ($1.1 Trillion)2. Payroll tax (FICA, Medicare) 3. Corporate tax ($297 Billion)

4. Excise tax ($74 Billion5. Customs Duties ($27 Billion)

1. Education $5 Billion (42%)2. Tenncare and welfare (29%)3. Police/Prisons (9%)4. Roads (7%)

7. Tennessee Spending

1. Sales tax (60%)2. Excise tax (13%)3. Alcohol/tobacco tax (3%)4. Inheritance tax (2%)

8. Sources of Tennessee Revenue

1. Education $660 million (42%)2. Police/Fire (23%)3. General services (13%)4. Roads (5%)5. parks and Rec (4%)

9. Metro Nashville Spending

1. Property Tax (50%)2. State and Federal Grants (20%)3. Sales Tax (17%)

10. Sources of Metro Nashville Revenue

In 2010, Romney made $21.7 million, on which he gave nearly $3 million in taxes at an effective tax rate of 13.9 percent. In 2011, the former governor earned a similar amount, and will pay more than $3.2 million in taxes at a rate of 15.3 percent.

The Buffett Rule is a tax plan proposed by President Barack Obama in 2011. The tax plan would apply a minimum tax rate of 30 percent on individuals making more than a

million dollars a year. According to a White House official, the new tax rate would impact 0.3 percent of taxpayers

John Wayne123 Cowboy PlaceWild West, Wy 28275ss# 435-54-8478

He’s single ‘cause he’s a cowboy. He lives on the range. No one can claim him, ‘cause he’s a cowboy. But he does have a job.

Box 1 of his W-2 is 67845.99 Federal income tax withheld is 10825.33Taxable interest income of 35.76

Judy Tango123 Disco Place

Funky Town, CA 28275ss# 435-54-8478

She’s single ‘cause she’s a disco queen. She lives on the dance floor. No one can claim her, ‘cause she’s a

queen. But she does have a job.

Box 1 of her W-2 is 46758.28 Federal income tax withheld is 4965.12

Taxable interest income of 22.45

Brian L Smith124 South Haven CtJackson, TN 37034

ss# 409-45-8345

He’s single and lives at home; his parents claim him as a dependent on their tax return.

Box 1 of his W-2 is $4574.45Box 2 of his W-2 is $502.88

Form 1099-INT shows interest income of $5.45

Fill out the 1040 EZ.

Are these legal tax deductions?

1. Interest that is paid on a mortgage.

2. Taking a client out to eat.

3. Cost of gas used to go to work.

4. Your job is moving you from Nashville to Las Vegas. Can you deduct moving expenses?

5. Cost to move pet if relocating for work?

6. Building a swimming pool because of health condition that requires swimming regimen.

7. Funds given to church as contribution.

8. Value of items given to Goodwill.

9. Cosmetic surgery for middle aged woman.

10. Cosmetic surgery for professional stripper.

11. State sales tax.