types of taxes. directions – step 1 write a definition in your own words for the following...
TRANSCRIPT
Directions – step 1
Write a definition IN YOUR OWN WORDS for the following concepts: Progressive tax Regressive tax Proportional tax Income tax Estate tax Excise tax Social security Medicaid/medicare Bonds
Regressive Taxes
Percentage of taxes goes down as your income goes up
Opposite of progressive
What are the positives?
What are the negatives?
Progressive Taxes
The tax rate (percentage) is higher at for people that make more money and lower for people that make less
What are the positives?
What are the negatives?
Income Tax
Progressive tax Based on your tax bracket
Tax on the amount of money that you make Taxable income – tax rate = income tax
Taxable income = income – deductions If income tax < taxes paid, then you get a
tax return If income tax > taxes paid, then you owe the
government How do I figure out my income taxes? Must file by April 15th If you make over $5,000 then you must file
Estate Tax
Taxes that children pay on their parents’ property after their parents die
What are the positives?
What are the negatives?
Budget Deficit & Surplus
Deficit: when the government spends more than it makes in revenue
Surplus: when the government spends less than it makes in revenue
The goals should be balance Pg 678
Social Security
Gives money to people who are retired to disabled
Gives support to those who cannot work like they used to
What are the positives?
What are the negatives?
Medicare & Medicaid
Medicaid: helps pay for healthcare for the poor
Medicare: helps pay for healthcare for elderly people
Pg 689
What are the positives?
What are the negatives?
National Debt
More debt = more taxes The taxpayers pay the interest on the
national debt• Debt increases when
unemployment increases• Debt increases during wartime
Checks & Balances and Separation of Powers at Work Who creates the national budget?
Who approves the national budget?
Who decides how much money will be collected in taxes? Where does the process start?