1. Key Terms Section 5.1  Is having more income than necessary withheld from your paychecks a good way to save? *Payroll Tax *Income Tax *FICA *Withholding *Gross Income *Net Income *Form W-4 *IRS *Allowance Question to think about!

2. Section 5.1  Gross Pay vs. Net Pay Kelly found a part-time job after school that pays $7.50 per hour. She wanted to take home at least $50 per week, so she agreed to work seven hours each Saturday. She expected her first paycheck to be $52.50. ($7.50 X 7hrs) She was surprised to find it was only $40.39. Why wasn’t Kelly’s check larger? *Look at example of paycheck from page 158 Section 5.1

3. Activity  Sample Form W-4 page 159 Section 5.1

4. Key Terms Section 5.2  Is the tax system too complicated for most ordinary taxpayers to understand? *Tax Return *Form W-2 *Form 1099-INT *Form 1040EZ *Dependent *Deduction *Social Security Number *Taxable Income Question to think about!

5. Form W-2 Example on page 164 Section 5.2

6. Activity & Homework Complete a 1040EZ  We will go over how to complete a 1040EZ tax form together. Homework Page 173 #3, 4, & 5 Section 5.2

7. Key Terms Section 5.3  What is the major source of revenue for the federal government? *Sales Tax *Property Tax *Excise Tax *Estate Tax *Gift Tax *Business Tax *Tariff Question to think about!

8. Section 5.3 DirectIndirectPay-as-You-Earn Income and property tax – are paid directly to the government Included in the cost of a good or service. Federal withholding-as you receive a paycheck, the government takes a cut. How Taxes Are Collected

9. Section 5.3 IncomeSalesProperty State and local income taxes may be withheld from your pay as well. Included in the cost of a good or service. Taxes in the value of your property when you own. Types of Taxes ExciseEstate & GiftBusiness/License State -tobacco, gas, alcohol Federal -oil products, firearms, air travel Estate -property that is received after someone dies. Gift -taxes that the giver of gifts may pay. Over $12,000 To operate certain kinds of businesses, you will be taxed on the license, permit, or stamp that you must hold.

10. Homework Page 178 #3 *make sure you explain each one

11. Key Term Section 5.4  How does the government spend the money it receives? *Public Good Question to think about!

12. Section 5.4  What State and Local Governments Provide  Roads  Police and Fire Services  Criminal Justice System  Schools – including colleges and universities  Medical Facilities  Sewage Plants  Unemployment Programs

13. Test Tomorrow  Complete Study Guide  Sleep and Eat Well  Bring a Pencil  Think Positive