1. …the Legislature shall not levy, authorize or otherwise permit any state or local tax upon payroll or earned personal income or any state or local tax measured by payroll or earned personal income… Tennessee Amendment 3 ResultVotesPercentage a Yes88225966.22% No45006633.78%

2. Yet, 70% would pay less with a state income tax in Tennessee.

3. TN voter turnout: 29.1%

4. Benefits received: 21.4 cents per gallon in Tennessee for road construction. Raises $657,000,000 for road construction.

6. Budgets and Taxes

7. Federal Government

8. 1. What is the current size of the US federal government’s debt (aka national debt)? A. $17.985 quadrillion B. $17.985 trillion C. $17.985 billion D. $17.985 million

9. 2. This year alone, the federal government will add what amount to the national debt? A. $483 Trillion B. $483 Billion C. $483 Million D. $483 Thousand

10. 3. What percentage of the federal government’s total tax revenue (income) does the top 10% of American wage earners provide? A. 70% B. 50% C. 30% D. 10%

11. 4. What percentage of the federal government’s tax revenue does the bottom 50% of US wage earners provide? A. 80% B. 50% C. 20% D. 2%

12. 5. Federal Budget 2012: Which is the single largest expenditure? A. Entitlements (Social Security, Medicare, Medicaid) B. Defense/Military C. Interest on our large national debt D. Governmental programs: crime fighting, highways, nat’l parks, education, regulatory agencies such as the EPA and FDA; funding for the arts, NASA, etc.

13. 6. Largest source of Federal Tax Revenue - Corporate income tax - Personal income tax - Excise tax - Estate taxes - Customs duties

14. 7. Where does largest % of TN tax revenue go? -Police/prisons -Tenncare and welfare -Roads -Education

15. 8. What is largest source of TN Tax Revenue? -Excise tax -Sales tax -Inheritance tax -Alcohol and tobacco tax

16. 9. Where does largest % of Metro Nashville Money Go? -Police/Fire protection -Education -Parks and Recreation -General Services (trash collection, etc) -Streets/roads

17. 10. Largest source of Metro Tax Revenue - Sales Tax - State and Federal Grants - Property Tax

18. 1. What is the current size of the US federal government’s debt (aka national debt)? A. $17.985 quadrillion B. $17.985 trillion C. $17.985 billion D. $17.985 million

19. B. $17.985 Trillion

20. 2. This year alone, the federal government will add what amount to the national debt? A. $483 Trillion B. $483 Billion C. $483 Million D. $483 Thousand

21. B. $483 Billion

22. 3. What percentage of the federal government’s total tax revenue (income) does the top 10% of American wage earners provide? A. 70% B. 50% C. 30% D. 10%

23. A. 70%

24. 4. What percentage of the federal government’s tax revenue does the bottom 50% of US wage earners provide? A. 80% B. 50% C. 20% D. 2%

25. D. 2%

26. Percentiles Ranked by AGIAGI Threshold on Percentiles Percentage of Federal Personal Income Tax Paid Top 1%$343,92736.73 Top 5%$154,64358.66 Top 10%$112,12470.47 Top 25%$66,19387.30 Top 50%$32,39697.75 Bottom 50%<$32,3962.25 Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

27. Entitlements (57%) Defense (25%) Everything Else (15%) Interest on National Debt (13%) 5. Federal Spending:

28. $2.57 Trillion income - $3.83 Trillion spent= $1.26 Trillion deficit in 2011 Defense: $895 Billion Social Security: $730 Billion Medicare: $491 Billion Medicaid: $297 Billion Interest on the Debt: $251 Billion Everything else: $520 Billion

29. 6. Sources of Federal Revenue 1.Income tax ($1.1 Trillion) 2.Payroll tax (FICA, Medicare) 3.Corporate tax ($297 Billion) 4.Excise tax ($74 Billion 5.Customs Duties ($27 Billion)

30. 1. Education $5 Billion (42%) 2. Tenncare and welfare (29%) 3. Police/Prisons (9%) 4. Roads (7%) 7. Tennessee Spending

31. 1. Sales tax (60%) 2. Excise tax (13%) 3. Alcohol/tobacco tax (3%) 4. Inheritance tax (2%) 8. Sources of Tennessee Revenue

32. 1. Education $660 million (42%) 2. Police/Fire (23%) 3. General services (13%) 4. Roads (5%) 5. parks and Rec (4%) 9. Metro Nashville Spending

33. 1. Property Tax (50%) 2. State and Federal Grants (20%) 3. Sales Tax (17%) 10. Sources of Metro Nashville Revenue

35. In 2010, Romney made $21.7 million, on which he gave nearly $3 million in taxes at an effective tax rate of 13.9 percent. In 2011, the former governor earned a similar amount, and will pay more than $3.2 million in taxes at a rate of 15.3 percent.

36. The Buffett Rule is a tax plan proposed by President Barack Obama in 2011. The tax plan would apply a minimum tax rate of 30 percent on individuals making more than a million dollars a year. According to a White House official, the new tax rate would impact 0.3 percent of taxpayers

41. John Wayne 123 Cowboy Place Wild West, Wy 28275 ss# 435-54-8478 He’s single ‘cause he’s a cowboy. He lives on the range. No one can claim him, ‘cause he’s a cowboy. But he does have a job. Box 1 of his W-2 is 67845.99 Federal income tax withheld is 10825.33 Taxable interest income of 35.76

42. Judy Tango 123 Disco Place Funky Town, CA 28275 ss# 435-54-8478 She’s single ‘cause she’s a disco queen. She lives on the dance floor. No one can claim her, ‘cause she’s a queen. But she does have a job. Box 1 of her W-2 is 46758.28 Federal income tax withheld is 4965.12 Taxable interest income of 22.45

43. Brian L Smith 124 South Haven Ct Jackson, TN 37034 ss# 409-45-8345 He’s single and lives at home; his parents claim him as a dependent on their tax return. Box 1 of his W-2 is $4574.45 Box 2 of his W-2 is $502.88 Form 1099-INT shows interest income of $5.45 Fill out the 1040 EZ.

44. Are these legal tax deductions?

45. 1. Interest that is paid on a mortgage.

46. 2. Taking a client out to eat.

47. 3. Cost of gas used to go to work.

48. 4. Your job is moving you from Nashville to Las Vegas. Can you deduct moving expenses?

49. 5. Cost to move pet if relocating for work?

50. 6. Building a swimming pool because of health condition that requires swimming regimen.

51. 7. Funds given to church as contribution.

52. 8. Value of items given to Goodwill.

53. 9. Cosmetic surgery for middle aged woman.

54. 10. Cosmetic surgery for professional stripper.

55. 11. State sales tax.