1. Government Expenses
-Government Services
-Government Employees
-Revenue Sources
60% to 80% come from taxes

2. Politics of Taxation
-all citizens of all governments pay taxes
-how much is enough???
-citizen revolts

3. Taxation Limits
-all tax bills must begin in House of Representatives
-uniformity of taxes
-can’t tax interstate trade or exports

4. Taxation Principles
-Adam Smith
Wealth of Nations
-Based on Ability to Pay
-Progressive Tax-- Tax that is based on the ability of a person to pay and people who make more money pay a greater percentage
-Regressive Tax-- Tax that is paid on an equal percentage by everyone---can be unfair to those with less of a disposable income

5. Taxation Principles
-Adam Smith
Wealth of Nations
-Based on Ability to Pay
-Progressive Tax-- Tax that is based on the ability of a person to pay and people who make more money pay a greater percentage
-Regressive Tax-- Tax that is paid on an equal percentage by everyone---can be unfair to those with less of a disposable income

6. Income Taxes
-Personal Income Tax
-Provides most of Federal Revenue
-Taxes based on Taxable Income
Exemptions
Deductions
Tax Returns
-Corporate Income Tax

7. Property Taxes
-Property Tax
-Primary revenue for local governments
-Based on estimated value
-Stable source of revenue

8. Sales Taxes
-Sales Tax
-Most sales taxes go to state government
-Easy to collect
-Sales Taxes are Regressive
-Excise taxes-- Tax that is placed upon certain items such as gas, alcohol, and cigarettes

9. Sales Taxes
-Sales Tax
-Most sales taxes go to state government
-Easy to collect
-Sales Taxes are Regressive
-Excise taxes-- Tax that is placed upon certain items such as gas, alcohol, and cigarettes

10. Other Taxes
-Social Security Taxes
-Estate Taxes
-Gift Taxes
-Tariffs

11. Non-Tax Revenue
-Intergovernmental Revenue
-Selling Excess Land or Property
-Tolls
-Fines
-Fees, Licenses, Disposal, Permits
-Lotteries