Income Tax- is a tax on income the money an individual or business earns. The 16 th amendment in 1913 gave our government the power to collect such a tax.

The government gets ½ its revenue from incomes taxes. Most states and cities have income taxes as well. Most states and cities have income taxes as well.

2 types of income tax personal and corporate. Personal- individuals pay personal income taxes based on the money they earn each year. Corporate- Corporations pay corporate income taxes based on their annual profits.

The deadline each year to file a tax return is April 15.

Exemption- the amount of money subtracted from each person before determining taxes. In 1996 the exemption was 2,550 plus $2550 for each dependent. A tax payer and a unemployed spouse would claim $5,100 Each child is an exemption.

Federal Income taxes are Progressive Progressive- People with higher incomes must pay a higher % of the taxes.

2009 Tax rates IncomeYour tax bracket 0$---$8,35010% $8,350---$33,95015% $33,950---$82,25025% $82,250---$171,55028% $171, $372,950 33% $ 372, and above35%

You pay only the % up to the next amount before it increases. $100,00 salary $ 8,025 minus 0 ) x.10 :$ (32,550 minus 8,025 ) x.15 :3,678.75(65,725 minus 32,550 ) x.25 :8,293.75(100,000 minus 65,725 )x.28 Total: $ 22,372.00

Property Taxes-a tax based on the value of property.

Usually property means real estate can it can also mean cars and jewelry.

An assessor has a system to determine the worth of your property.

Property tax is usually a % of the assessed property. In one community it might be 4.5%, which on a $100,000 house would end up being $4,500. In another community it might be 2%, which on a $100,000 would end up being $2,000.

Sales Tax- is a tax placed on the sale of various products. The purchaser pays the tax at the time of the purchase. The seller collects the tax and sends it to the government.

Excise Tax- a tax on certain products Every state places an excise tax on cigarettes, alcohol and gasoline.

A sales tax is regressive because the tax is the same for everybody. Sales taxes hit poor and low income people the hardest. Because they must spend all their earnings on necessities.

Wealthy people pay taxes on a smaller proportion of their earnings. If a wealthy family and a poor family both spend $500 on groceries per month the wealthy family is spending a smaller proportion of their money on groceries. They will have more money left over.

To make sales taxes less regressive governments exclude certain items from being taxed. Sales of groceries and medical supplies are not taxed. This helps the poorer people have more money for necessities.

Estate Tax- property left over after a person dies is taxed.

Social Security Tax- Started in 1935 employees and workers pay in a combined 15.3 % of their checks and it gets paid back to workers at age 62, 67 or 70.

Tariff- a special kind of import tax. A tariff is designed to raise revenue as well as protect American industries. When we place a tariff on foreighnn products they do the same to us.

Non Tax revenue for governments The government pay rent or lease unneeded lands. Toll Booths, Fines for speeding, copyright fees, Lotteries,Sell license Fine