1. Economic continued Lets get through this so that we can work all next week on a debate.

2. How can people make a difference? Because we have a mixed economy that means there is elements of a market economy In a market economy what drives supply and demand? Consumers.

3. Boycott!!!!!!!! A boycott is a decision by a group of Consumers not to buy certain products. Why would people boycott a product? Do you know of any groups that have requested people boycott a product? (hint: look on page 262)

4. The government and their money What do you think about taxes?

5. What do taxes go to? A large portion of taxes go to social programs Social programs are: services provided by government to reduce economic inequalities and promote wellbeing of citizens. What are some Social Programs? (hint you are using one right now Health Care Education Pensions for seniors citizens Income assistance Affordable housing Child protection services Employment insurance

6. Taxation and Social Programs Government collects taxes to pay for the services it provides to citizens such as social programs. All three levels of government, Federal, Provincial and Municipal collect taxes.

7. Types of taxes Main types of tax that people pay Income tax: is based on what you earn: the more money you earn the more tax you pay This is collected by both Federal and Provincial governments

8. Types of taxes Sales taxes: are based on what you spend on products and services: the more you spend the more tax you pay. The GST is a Federal sales tax that everybody pays It is 5% Alberta is the only province that does not charge a sales tax.

9. Spending by the Canadian Government

10. Spending by Alberta’s Government

11. Taxation Model A taxation model is a policy about taxation that describes what to tax, how much to tax and how to spend taxes.

12. Issues with taxes In all countries there is a tax base which is : all the economic activity in a society taxed by government to pay for services In all countries including Canada it is against the law to avoid paying taxes. Canadians must report what they earn so the government can determine and collect the tax they owe.

13. Tax issues Some people try not to pay their taxes or try to hide how much money they earn so they do not have to pay as much tax this is called Tax evasion. These people work in what is called the underground economy The underground economy or Black Market is economic activity based on buying and selling products and services illegally People who work without paying taxes are part of the underground economy.