1. ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ APK: Activation of Prior Knowledge Write at least 2-3 sentences describing a time when… you thought taxes on an item you purchased were excessive or unnecessary Questions of the Day What is the purpose of taxation? How can certain types of taxes affect human behavior/choices?

2. Federal Taxation Type Explain

3. Federal Taxation Type Explain Excise tax

4. Excise Taxes Purposes? Tax intended to discourage a behavior [alcohol consumption, tobacco use]. To raise money to fill gaps in the budget.

5. Federal Taxation Type Explain Estate tax

6. Estate Tax Also called the inheritance tax or death tax Money paid to the government for property or money received from a dead person. Until 4 years ago the tax rate was 55% of inheritance. Purpose? [A] Prevent wealth from being passed on [B] raising tax revenue

7. Federal Taxation Type Explain Capital gains tax

8. Capital Gains Tax Property, assets and investments that appreciate [increase] in value are considered taxable. Example: You buy a house for $10,000 in 2008 You decide to sell the house in 2010 for $20,000 You had a $10,000 capital gain which you must pay tax on

9. Federal Taxation Type Explain Tariff

10. ProtectiveTariff A tax placed on imported goods such as food and cars made in foreign countries. Why? To raise the cost of items so the price is competitive with domestic made goods. What is the message of this cartoon?

11. Progressive Taxation What pattern is occurring here ? Is this fair? Federal Income Tax Rate (%) Amount of wage/salary 10% $0 to $8,025 15% $8,026 to $32,550 25% $32,551 to $78,850 28% $78,851 to $164,550 33% $164,551 to $357,700 35% $357,701 and above “The more you make the more they take”

12. Writing Assignment: Raft Paper Raft Paper Write a story about a situation regarding one of the types of taxes we have learned about [excise, estate, capital gains or tariffs]. Some ideas/suggestions include: You have inherited money and were assessed heavy estate taxes did not pay and you are now in trouble. You are an import business affected by tariffs and your business is suffering. You are a cigarette smoker who is complaining about an increase in excise taxes or you are a citizen who wants beer drinking reduced and taxes may make it more expensive. You just sold a car for more money than you paid for it and the government sent you a tax bill on your capital gain so you want to share your opinion

13. Sources http://www.cheap-cigarette-discount.biz/_/group.jpg http://www.lucubus.com/thedailyhey/010929-liquor.jpg http://www.jonco48.com/blog/gasoline.gif http://www.faireconomy.org/images/DeathTaxGuy.jpg http://www.nicholsoncartoons.com.au/cartoons/new/200 2-03-06%20Mar%20US%20tariff%20wall%20550.JPG http://en.wikipedia.org/wiki/Tax_bracket http://www.nafep.com/public%20info/images/Ca pital%20gains/Capital-Gains-Taxes-on-appr.gif