1. March 2, 2017 CNN Student News Notes/discussion over taxes
Current Event
Chapter 16 Vocab. Quiz Monday March 6
5. Economic Policy Quiz March 10
Students will be able to describe the power of Congress to tax and how those taxes are used

2. Article I of the Constitution and the 16th Amendment give Congress the broad powers to set federal taxes.
Today Congress collects most of its revenue in the form of income taxes paid by individuals and corporations.

3. The Power to Tax
What are the expressed constitutional limitations to the power to tax?
What is the implied limitation on the power to tax State and local governments and how can the Federal Government tax them?

4. Revenue Raising Taxes Individual income tax Corporate income tax
Social insurance taxes
Excise taxes
Estate and gift taxes
Custom Duties

5. Payroll taxes are taxes paid on the wages and salaries of employees
Payroll taxes are taxes paid on the wages and salaries of employees. These taxes are used to finance social insurance programs, such as Social Security and Medicare

6. Progressive taxes are levied according to level of income while regressive taxes are leveled at a flat rate.

7. Fiscal Policy– The power of the Federal Government to tax and spend.

8. What kind of tax is it?
Medicare: ______________________ and _________________
Federal tax on imported peanuts: _______________________
Income tax: ________________________________
Tax on inheritance: _______________________________
A gift of $10,000: __________________________________
The higher the income the higher the tax: ___________________
An item purchased in Mexico and brought into the U.S. __________

9. Why does the government borrow money?
1. To meet the cost of long and short term crisis
2. To finance large scale projects
3. Deficit financing

10. What is public debt?
What has been the trend of the public debt over the past 20 years?
Why is it easier to borrow money then cut the deficit?