economic policymaking
DESCRIPTION
ECONOMIC POLICYMAKING. Who controls the Economy today?. The President AND Congress!. The Federal Economy. The PresidentThe Congress 1921 Budget & 1921- Congress hands over Accounting Actthe reigns to the President to prepare the budget CEA- Council of - PowerPoint PPT PresentationTRANSCRIPT
ECONOMIC POLICYMAKING
Who controls the Economy today?
The
President
AND
Congress!
The Federal Economy
The President The Congress
1921 Budget & 1921- Congress hands over Accounting Act the reigns to the President
to prepare the budget
CEA- Council of Economic Advisors
(3 members)
OMB- Congressional Budget Office of Management & Budget & Impoundment Act 1974 (over 500 workers)
CBO- Congressional Budget Office
Market vs. Non Market Economies
ADAM SMITHGovernment keep your hands out of
Business!
• ADAM SMITH
LAISSEZ FAIRE
JOHN MAYNARD KEYNES
• We can control the Economy!
• Aggregate Demand can be controlled
through Monetary and Fiscal means.
FISCAL POLICIES
SPENDING
&
TAXING
MONETARY POLICIES
Money Supply
&
Interest Rates
The Federal Reserve
Established 1913
7 Members all appointed by the presidentin office
14 yr. Tenure
Federal Chairman BEN BERNANKE
TAXES WE PAY
Property- pays for education, police, and fire protection
Excise- ex: gasoline tax
Personal- tax on your income
Sales Tax- State and Local OH= 6% Geauga County- 6.5%
Cuyahoga County- 7.5%
TAXES WE PAY
Payroll Taxes- Social Security, Medicare etc.
Licenses-
Social Insurance- Social Security
User Fees- turnpike tolls
Ohio’s State Income Taxes• How Ohio State income tax rates are structured The tax table below will show in detail the
Ohio state income tax rates by income tax brackets).
• There are 9 income tax brackets for Ohio.
• If your income range is between $0 and $5,000, your tax rate on every dollar of income earned is 0.587%.If your income range is between $5,001 and $10,000, your tax rate on every dollar of income earned is 1.174%.If your income range is between $10,001 and $15,000, your tax rate on every dollar of income earned is 2.348%.If your income range is between $15,001 and $20,000, your tax rate on every dollar of income earned is 2.935%.If your income range is between $20,001 and $40,000, your tax rate on every dollar of income earned is 3.521%.If your income range is between $40,001 and $80,000, your tax rate on every dollar of income earned is 4.109%.If your income range is between $80,001 and $100,000, your tax rate on every dollar of income earned is 4.695%.If your income range is between $100,001 and $200,000, your tax rate on every dollar of income earned is 5.451%.If your income range is $200,001 and over, your tax rate on every dollar of income earned is 5.925%. Income tax brackets data last updated March 3rd, 2009.
2008 Tax Bracketsfor Single Taxpayers
2008 tax rates and brackets
These tables can help you estimate your tax bill
For single taxpayers
If taxable income is at least . . . But not more than . . . Your tax is:
$0 $8,025 10% of the amount over $0
$8,026 $32,550 $802.50 plus 15% of the amount over $8,025
$32,551 $78,850 $4,481.25 plus 25% of the amount over $32,550
$78,851 $164,550 $16,056.25 plus 28% of the amount over $78,850
$164,551 $357,700$40,052.25 plus 33% of the amount over
$164,550
$357,701 No limit$103,791.75 plus 35% of the amount over
$357,700
2008 Tax Brackets for Married Couples
For married couples filing jointly*
If taxable income is at least . . . But not more than . . . Your tax is:
$0 $16,050 10% of the amount over $0
$16,051 $65,100 $1,605 plus 15% of the amount over $16,050
$65,101 $131,450 $8,962.50 plus 25% of the amount over $65,100
$131,451 $200,300 $25,550 plus 28% of the amount over $131,450
$200,301 $357,700 $44,828 plus 33% of the amount over $200,300
$357,701 No limit $96,770 plus 35% of the amount over $357,700
* Or qualifying widow or widower
2008 Tax Brackets for Heads of Household
For heads of households
If taxable income is more than . . . But not more than . . . Your tax is:
$0 $11,450 10% of the amount over $0
$11,451 $43,650 $1,145 plus 15% of the amount over $11,450
$43,651 $112,650 $5,975 plus 25% of the amount over $43,650
$112,651 $182,400 $23,225 plus 28% of the amount over $112,650
$182,401 $357,700 $42,755 plus 33% of the amount over $182,400
$357,701 No limit $100,605 plus 35% of the amount over $357,700
STATE TAXES ON INDIVIDUALSSee document in Ch. 18 folderSEE My Pay Stub--- in ch. 18 folder
See ch. 18 folder for Receipts and Outlays 2004
Figure 18.2
Federal Spending in 2011, by Function
20
TARP
Troubled Asset Relief Programs
Passed in 2008 by President Bush
American Recovery and Reinvestment Act
(ARRA) 2009February 13 ARRA was passed by both the House and Senate .
Originally intended to be a bipartisan bill, the passage of the bill was largely along party lines. No Republicans voted for it in the House& three moderate Republicans voted for it in the Senate Collins and Snowe of Maine and Specter of PA.
The bill combined TAX BREAKS with spending on INFRASTRUCTURE Projects, extension of welfare benefits, and education. The final cost of the bill was $787 billion, and almost $1.2 trillion with debt service included.
President Obama signed the Act into law on February 17, 2009.