horrible thought for the day did you ever notice that when you put the two words “the" and...
TRANSCRIPT
Horrible Thought for the Day
Did you ever notice that when you put the two
words “The" and "IRS" together it spells
"THEIRS"?
Course Resources
Course Resources
Text book
My Web Page
MSTC Educator Web site
INCOME TAX ACCOUNTING
• Who must pay income taxes?
• What things are taxable?
• What is not taxable?
• What is the income tax rate?
• How are taxes paid?
• What are income taxes used for?
ONE GOOD REASON TO WISH YOU LIVED IN 1917
• The top Federal tax bracket was 7%
• Today’s top is ???
• Federal income tax was first introduced as an amendment to the U.S. Constitution
• Which amendment is this?
• In 1913 married couples’ incomes of $4,000 to $20,000 were taxed a flat 1%
• Today’s rate for this group is ???%
TAX TRIVIA
1913• Only 357,598
personal income tax returns were filed
2006• 135,901,700 personal
tax returns were submitted
• Over 74 million were submitted electronically
TAX TRIVIA
1913• According to the 1910
census, the U.S. population was 91,972,266
• only .3% of the population made enough money to be taxed
2006• The current
population is• ???
• 44% of today’s population pays taxes
• Overall average tax is 12.1% of adjusted gross income
TAX TRIVIA
1913• Only five households
made more than $1 million
• Tax collected was $35 million
• In 1934--$420 million
2006• 1 out of every 500 have
income over $1 million • Tax collections totaled
$966,877,000,000• 1,552,000 returns
reported gambling income of $18,745,000
TAX TRIVIA
1913• Before income tax,
the government relied on import taxes and “sin” taxes on alcohol and tobacco
• Only 10% of the government’s revenue came from the income tax
2006• 101,208,000 refunds
were issued• 49% were electronic• Total refunds were
$229.1 billion• Average refund was
$2,264
Tax Trivia
• Gross Federal Debt
–1940
•$50,696 million
–2006
•$8,707,627 million
Tax Trivia
• The top 50% of income earners
–Paid 96% of all Federal tax
• The top 1% of income earners• Paid 30% of all Federal tax
Tax Trivia
• States with no state income tax:– Florida– Nevada– South Dakota– Texas– Wyoming– Washington D.C.
IRS Web sites
• Student Homepage
• IRS Warns of e-Mail Scam about Tax Refunds
• Tax Information for Individuals
• Internal Revenue Service
WISCONSIN INCOME TAX• First state to adopt a successful
income tax
• Tax enacted in 1911, collecting $1.6 million
• Tax was distributed 70% to local towns, 20% to counties, 10% to state
• 2003 A.G.I--$109,876,610,000
• Per return = $40,654
WISCONSIN INCOME TAX• $3.726 billion in taxes collected• which represents $10.8 million per day• Income tax represents 50% of total state taxes• 2.9 million tax returns filed in 2004• 2.3 million refunds issued• representing 3.5 million people of total
population of 5. million• 50% of tax returns were single filers• 70% of returns were the long form• Collection of income taxes are expected to rise
approximately 6% this year
Tax Forms
• Most Public Libraries
• www.irs.gov
WIS Tax Web sites
• Wisconsin Department of Revenue Home
• Individuals - Wisconsin Department of Revenue