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Government Expenses

-Government Services




-Government Employees




-Revenue Sources
 60% to 80% come from taxes
Politics of Taxation

-all citizens of all governments pay
  taxes




-how much is enough???




-citizen revolts
Taxation Limits

-all tax bills must begin in House of
  Representatives




-uniformity of taxes




-can’t tax interstate trade or
  exports
Taxation Principles

-Adam Smith
 Wealth of Nations


-Based on Ability to Pay


 -Progressive Tax-- Tax that is
 based on the ability of a person to
 pay and people who make more
 money pay a greater percentage


 -Regressive Tax-- Tax that is
 paid on an equal percentage by
 everyone---can be unfair to those
 with less of a disposable income
Taxation Principles

-Adam Smith
 Wealth of Nations


-Based on Ability to Pay


 -Progressive Tax-- Tax that is
 based on the ability of a person to
 pay and people who make more
 money pay a greater percentage


 -Regressive Tax-- Tax that is
 paid on an equal percentage by
 everyone---can be unfair to those
 with 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 local
  governments




-Based on estimated value




-Stable source of revenue
Sales Taxes

-Sales Tax


-Most sales taxes go to state
  government


-Easy to collect


-Sales Taxes are Regressive


-Excise taxes-- Tax that is placed
  upon certain items such as gas,
  alcohol, and cigarettes
Sales Taxes

-Sales Tax


-Most sales taxes go to state
  government


-Easy to collect


-Sales Taxes are Regressive


-Excise taxes-- Tax that is placed
  upon 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

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62 government revenue

  • 1. Government Expenses -Government Services -Government Employees -Revenue Sources 60% to 80% come from taxes
  • 2. Politics of Taxation -all citizens of all governments pay taxes -how much is enough??? -citizen revolts
  • 3. Taxation Limits -all tax bills must begin in House of Representatives -uniformity of taxes -can’t tax interstate trade or exports
  • 4. Taxation Principles -Adam Smith Wealth of Nations -Based on Ability to Pay -Progressive Tax-- Tax that is based on the ability of a person to pay and people who make more money pay a greater percentage -Regressive Tax-- Tax that is paid on an equal percentage by everyone---can be unfair to those with less of a disposable income
  • 5. Taxation Principles -Adam Smith Wealth of Nations -Based on Ability to Pay -Progressive Tax-- Tax that is based on the ability of a person to pay and people who make more money pay a greater percentage -Regressive Tax-- Tax that is paid on an equal percentage by everyone---can be unfair to those with less of a disposable income
  • 6. Income Taxes -Personal Income Tax -Provides most of Federal Revenue -Taxes based on Taxable Income Exemptions Deductions Tax Returns -Corporate Income Tax
  • 7. Property Taxes -Property Tax -Primary revenue for local governments -Based on estimated value -Stable source of revenue
  • 8. Sales Taxes -Sales Tax -Most sales taxes go to state government -Easy to collect -Sales Taxes are Regressive -Excise taxes-- Tax that is placed upon certain items such as gas, alcohol, and cigarettes
  • 9. Sales Taxes -Sales Tax -Most sales taxes go to state government -Easy to collect -Sales Taxes are Regressive -Excise taxes-- Tax that is placed upon certain items such as gas, alcohol, and cigarettes
  • 10. Other Taxes -Social Security Taxes -Estate Taxes -Gift Taxes -Tariffs
  • 11. Non-Tax Revenue -Intergovernmental Revenue -Selling Excess Land or Property -Tolls -Fines -Fees, Licenses, Disposal, Permits -Lotteries