1. Do Now What are some strengths/weaknesses of your city? Think of its government if you can…

2. STANDARDS 1.4.3, 2.2.5 Local and State Governments

3. Essential Question: How do state and local governments generate and spend revenue?

4. Local and State Governments 1. Fines 6-10 mph over limit (2) (Limited Access/1pt) $105.00 Careless Driving (3) $180.00 *Careless Driving / ACCIDENT (3)  $205.00 http://www.mitrafficticket.com/mi trafficticket/pause/fines_costs.htm

5. Local and State Governments 2. Licenses: a permit from an authority to own or use something, do a particular thing, or carry on a trade  Liquor: Average is 600 dollars a year  Healthcare  Construction  List goes on… http://www.michigan.gov/lara/0,4601,7-154- 35299_61343_36737---,00.html

6. Local and State Governments 3. Taxes **The government will tax FOUR main things** 1. Sales 2. Income 3. Wealth 4. Property

7. Local and State Governments Sales Tax: a tax on the receipt of sales (things you buy everyday) Right now the sales tax in Michigan is “6 %”  $20 purchase would now be $21.20  Too much? Not enough?

9. Local and State Governments Income: a tax on the income you make from job  There are state and federal taxes on income http://www.irs.gov/pub/irs-pdf/fw4.pdf  Complicated? We will try to make sense of it  http://www.calculator.net/take-home-pay- calculator.html?cannualincome=31%2C300&cpayfrequency=S emi- monthly&cfilestatus=Single&callowance=2&cdeduction=1&cst atetax=6&ccitytax=0&cadditionat1=no&printit=0&x=74&y=7 http://www.calculator.net/take-home-pay- calculator.html?cannualincome=31%2C300&cpayfrequency=S emi- monthly&cfilestatus=Single&callowance=2&cdeduction=1&cst atetax=6&ccitytax=0&cadditionat1=no&printit=0&x=74&y=7

10. Local and State Governments Wealth: tax on the total amount of assets a person has (more than money)  Houses  Insurance  Stocks Controversial in U.S. usually just property in most instances

11. Local and State Governments Property tax: tax created by local governments on homes/ businesses in their towns  Usually between 1-4 % This is primarily what funds schools, police, and fire protection  What could be a problem with this?

12. Local and State Government Example: One way in which the state government is trying to #FixtheRoads is through an increase in the **gasoline tax** https://www.youtube.com/watch?v=EsstXfl m0Pw https://www.youtube.com/watch?v=EsstXfl m0Pw Should we raise the gasoline tax to pay for repairs in our roads?

13. #FixTheRoads https://www.youtube.com/watch?v=FNVMtUTuWj 4 https://www.youtube.com/watch?v=FNVMtUTuWj 4

14. Essential Question How do governments generate and spend revenue for public services and social welfare programs?

15. Revenue Our government uses this revenue $$ to provide us the people with goods and services such as.. 1. National Defense, Schools, Libraries, Roads 2. Social Security, Unemployment Benefits, Medicaid, and Medicare

16. Social Security: a federal insurance program that provides benefits to retired people and those who are unemployed or disabled Medicaid: health care for poor Medicare: health care retired

17. Where do these revenues go?

18. Michigan State Level…

19. Exit Summary Describe how you would you try and fix Michigan roads. Do you want to raise taxes or not raise them to accomplish this goal?

20. Do Now What do you think it means to say we have a “national budget”? How does the government get money? What kinds of things does the government spend money on?