Question of the Day 2/24/14 List 4 rights you have as a citizen and then list 4 responsibilities you have.

Unit 5 Overview Rights and Responsibilities of Citizens

Guiding Questions 1. Can students distinguish different types of taxes? 2. Can students state the purposes and uses of particular types of taxes? 3. Can students explain the fairness issue related to different types of taxes? 4. Can students distinguish different types of rights? 5. Can students define social injustice and give an example in American society? 6. Can students define civic responsibility and give an example in American society?

Unit 5 Activity 1 Rights and Responsibilities of Citizenship – A Focus on Taxes

Who are these people? What do they have in common?

History of Taxes Cooking Oil, Foreigners, and Slaves (Ancient Egypt) Cooking Oil, Foreigners, and Slaves (Ancient Egypt) Sales, Inheritance, Imports, and Exports (Ancient Rome) Sales, Inheritance, Imports, and Exports (Ancient Rome) Beards, Beehives, Boots, and Souls (Russia, 1702) Beards, Beehives, Boots, and Souls (Russia, 1702) Bachelors (England,1695; Missouri, 1820) Bachelors (England,1695; Missouri, 1820)

So how does the government get all this money? TAXES Revenue: the money the government receives. Taxes: the fees charged on a product, an activity, or income.

How does the government get its money? The government has many expenses. Governments need a reliable source of income to carry out their laws and regulations.

Different types of taxes Progressive tax—a tax in which people who earn more money pay more taxes Regressive tax—a tax in which everyone pays the same amount no matter how much they earn

Progressive Taxes Income tax—a progressive tax on the money an individual or business earns. –There was no such thing as income tax until 1913 when the 16 th Amendment of the Constitution passed –Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

Regressive Taxes Sales tax—a tax placed on the sale of products Popular because they are so easy to collect Excise tax—a sales tax collected on specific products—gasoline, cigarettes, alcoholic beverages –Alaska, Delaware, Montana, New Hampshire, and Oregon are the five states that currently do not impose general sales taxes at the state level. –However, numerous boroughs and cities in Alaska have their own local sales taxes. –Furthermore, the other four states impose sales-type taxes on specific transactions, such as lodging accommodations.

Louisiana Sales tax The sales tax rate in Louisiana is 4%. When an item is purchased, the state sales tax is combined with the local sales tax in that area. Hammond—9%Ponchatoula—9%Amite—9.5%Mandeville—9.25% Fuel—in Louisiana, there is a 20 cent tax added to every gallon of gas or diesel and federal 18.4 cents per gallon for a total of 38.4 cents of tax Covington—8.75% Folsom—9.25% Madisonville—8.75% Baton Rouge—9%

Property Tax property tax—a tax on the value of property, especially real estate –but also can be on boats, jewelry, automobiles recreational vehicles, and business inventories –Property taxes are assessed and collected at the local level in Louisiana Property taxes are a primary source of revenue for local governments

Other Types of Taxes Inheritance tax or estate tax or death tax—a tax on a deceased person’s property. –Collected at the federal level if the estate worth exceeds $600,000. –Collected in Louisiana over $15,000. Gift tax—a tax on gifts worth over a certain amount –Federal—over $10,000 –State—over $12,000

Other Types of Taxes cont. Social Security Tax—a tax on wages that goes into a federal fund that provides financial support for the elderly. Tariff—import tax that protects American industries.

Other Types of Revenue Lease land to raise money Fines—traffic regulations, clean air and water TollsFees –Hunting, fishing, driving, marrying (state) –Copyrights, passports (federal) Lotteries