1. Government spending

3. What would happen if we paid all of our taxes at the end of the year?
GOVERNMENT WOULD STOP FUNCITONING AND PEOPLE WOULD STURUGGLE TO PAY THEIR TAXES
Government uses a pay as you go system (aka the taxes taken out of a persons paycheck)

5. How The Gov. takes your taxes
Tax Withholding: taking payments out of your pay before you receive it (your employer does this and sends it to the gov.)
This is an estimate of how much taxes you will owe for the year

6. Types of federal taxes
Corporate income: Same as individual income tax just from a corporation
Social security, medicare, unemployment (common to all checks)

7. Special taxes
Excise: tax on the sale or manufacture of a good (ex gasoline, cigarettes, alcohol, T.V etc)
Estate: tax on total :value of money and property of a person who has died (only applies to estates over 2 million)
Gift: money or property given from one living person to another
Import: also called a tariff

8. Where do you think most of the money from taxes goes?

10. What does the state spend our money on?
Education: this include state colleges
Public safety: fire, police
Highways and transportation: roads, airports
Public welfare: hospitals, water
Arts and recreation: state parks and museums
Administration
Pensions
Interest

11. IL Budget Total revenue 32.7 Billion
Total spending 32.5 (we also have to pay 4.7 billion in debt services
Big 3 expenditures
Education 9.5 billion
Healthcare 7.1 Billion
Pensions 6.6 Billion

12. How does the state collect its money
The Big 3
Sales tax: biggest source of revenue
Income tax: just like the federal income tax
Corporate income tax

13. Local revenue and spending
Big 3 Revenue
Property Tax
Intergovernmental
Non residential taxes
Big 3 Spending
Education
Utility
Police and fire