US ECONOMYFacts about state budget, taxes etc

FACTS

GDP approx 15 trillion (2011)GDP per capita 46, 844 , 7th in

the worldInflation 3,9% (2011)Population below poverty 15 %Unemployment rate 9% (2011)

MAIN INDUSTRIES

petroleum, steel, motor vehicles aerospace, telecommunications Chemicals creative industries electronics food processing, consumer goods lumber, mining Defense biomedical research and health care services computers and robotics

EXPORTS – 1,280 TRILLION USD (2010)

Goods:agricultural products (soybeans, fruit, corn) 9.2%,industrial supplies (organic chemicals) 26.8%capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%consumer goods (automobiles, medicines) 15.0% (2009)

PARTNERS

Canada 13.2%; Mexico, 8.3%; China, 4.3%; Japan, 3.3%(2009)

IMPORT – 1,948 TRILLION USD (2010)

Goods: agricultural products 4.9%industrial supplies 32.9% (crude oil 8.2%)capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery)consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2009)

PARTNERS

China, 15.4%; Canada, 11.6%; Mexico, 9.1%; Japan, 4.9%; Germany, 3.7%(2009)

Largest trading country in the world As of 2010 – EU largest trading partner

of US Canada, China and Mexico –largest

individual trading nations One of the largest and most influential

financial markets Worlds largest economy since 1870s

MIXED ECONOMY –STABLE GROWTH

-stable overall GDP growth rate-low unemployment rate-high levels of research and

capital investment

Public debt 14,972 trillion USD (99,7% of GDP)

Revenues 2,302 trillion Expenses 3,601 trillion (2011)

Credit rating Moody´s AAA Fitch AAA Standard & Poor´s AA+ (AAA)

REASONS BEHIND US ECONOMIC GROWTH

a large unified market a supportive political-legal system vast areas of highly productive farmlands vast natural resources (especially timber,

coal and oil) a cultural landscape that valued

entrepreneurship a commitment to investing in material and

human capital a willingness to exploit labor

ECONOMIC FREEDOM

A central feature of the U.S. economy is the economic freedom afforded to the private sector

Economic decisions - the direction and scale of what the U.S. economy produces

Relatively low levels of regulation and government involvement

A court system that generally protects property rights and enforces contracts

ENTREPERNEURSHIP

29.6 million small businesses30% of the world's millionaires40% of the world's billionairesas well as 139 of the world's 500

largest companies

VALUABLE INVESTMENTS IN SCIENCE AND INNOVATION

Airplanes Internet, email, cellphone Microchip, laser refrigerator, microwave, air

conditioning LCD and LED technology assembly line supermarket, bar code electric motor ATM

EMPLOYMENT

Approx 154.4 million employed individuals US. Government - largest employment sector

with 22 million Largest employer - small businesses (SMBs),

representing 53% of workers 2nd largest - large businesses, they employ a

total of 38% of the US workforce A total of 91% of Americans are employed by

the Government accounts for 8% of all US workers Over 99% of all employing organizations in the

US are small businesses

LABOUR FORCE AND UNEMPLOYMENT

Former immigrants, former slaves and their descendants make up the majority of labour force in US

Unemployment rate is officially 9%, unoff 17 %

Among youth 18,5% Among african-american young males

34,5% In Detroit 30% (after GM was closed)

SECTORS / INDUSTRIES

RETAIL – the major sector, leading US economy (Walmart, McDonalds, Amazon.com)

ENERGY – US is the 2nd largest energy consumer in the world

- fossil fuels: 40% petroleum, 23% coal, 23% natural gas

- nuclear 8,4% and renewable energy 6,8%

US is nr 1 oil importer - 70% reliant on foreign oil

SECTORS / INDUSTRIES

MANUFACTURING - worlds largest manufacturer – greater than Germany, France, India and Brazil combined.

Leads airplane manufacturing. Main industries include petroleum,

steel, automobiles, construction machinery, aerospace, agricultural machinery, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.

SECTORS / INDUSTRIES

AGRICULTURE - US controles 50% of worlds grain exports

INTERNATIONAL TRADE – leading importer

FINANCE – New York Stock Exchange is 3x larger than nay other stock exchange in the world (NASDAQ is nr 3)

Trade deficit in 2010 was 635 billion USD.

REGULATIONSRegulations to control prices (price fluctuations):1.State-regulated monopolies (set price levels)2.Antitrust law – prohibiting merges that limit competition3.Bank regulations – 2 levels, state and government level 4.Control over private companies (for health and safety purposes)- ex Food and Drug Administration

TAXES

Taxes involve payments to at least 4 different levels of government:federal governmentState governmentsLocal governmentsCounties, municipalities, townships

The average marginal tax rate is about 40% of income.

FEDERAL TAXATION

Income tax 10-35/15-35% Payroll tax (social insurance

2x(6,2/1,45%) Alternative minimum tax (AMT) 26-

28% Estate tax Excise duty Gift tax Corporate tax Capital gains tax

STATE AND LOCAL TAXES

State income tax Sales tax (not VAT) 1-10% Use tax Property tax Land value tax

All taxation rules vary widely by jurisdiction.

the federal personal income tax is progressive - a higher marginal tax rate is applied to higher ranges of income

The federal payroll tax is a flat tax – for Social Security and Medicare

3 tax administrations on fereral level: Alcohol and Tobacco Tax and Trade

Bureau (TTB) Internal Revenue Service (IRS) U.S. Customs and Border Patrol

STATE BUDGET