1. Unit VIII Ch-12
Government
Taxation

2. I. Taxation Purpose Collection and Spending
Raise revenue to pay the cost of government
Services
Collection and Spending
Budget
President, OMB, & Congress, request from exec. Dept.
Balance & surplus, deficit

3. Character of a Fair Tax 1. Based on ability to pay
2. Equal to everyone
3. Easy to pay
4.Collected at a convenient time

4. Dept. of Treasury Priority List what is important Exec. Dept.
Treasurer
IRS
Priority List
what is important
Exec. Dept.

5. II. Incomes Sources for Governments
Federal Government
Personal Income Tax
Largest source
Exemption, deductions, taxable incomes
Voluntary Compliance
Corporation Income Tax
Second largest source
Profits

6. Estate, Gift, Inheritance Bonds
Excise Tax
Luxury items (yachts, cars, etc.)
Tariffs
Imported goods
Estate, Gift, Inheritance
Bonds

7. State Government Federal Government Sales Tax Personal income
Corporation Income Tax
License & Fees

8. Harry G. Smith Tax Administrator/Collector
Local Government
Federal & State Government
Property Tax
License & permits
Fines
Services Provided
Federal Government
State Government
Harry G. Smith Tax Administrator/Collector

9. III. Effects of Taxation & Gov’t Spending on Economy
Government Spending
Short term
Long term
Taxation

10. Why the Cost of Gov’t has risen.
5 Reasons
Larger population
Cost of items ha gone up
Size of Gov. has grown (more services)
Defense Spending
Nat’l Debt has risen