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TAXES CHANGE BEHAVIOR. 1.PAY FOR THE COST OF GOVERNING WHAT ARE THE FUNCTIONS OF TAXATION?

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Presentation on theme: "TAXES CHANGE BEHAVIOR. 1.PAY FOR THE COST OF GOVERNING WHAT ARE THE FUNCTIONS OF TAXATION?"— Presentation transcript:

1 TAXES CHANGE BEHAVIOR

2 1.PAY FOR THE COST OF GOVERNING WHAT ARE THE FUNCTIONS OF TAXATION?

3 2. INFLUENCE CONSUMER AND BUSINESS SPENDING WHAT ARE THE FUNCTIONS OF TAXATION?

4 REDISTRIBUTE WEALTH 3. REDISTRIBUTE WEALTH WHAT ARE THE FUNCTIONS OF TAXATION?

5 4. PROTECT DOMESTIC JOBS AND INDUSTRIES WHAT ARE THE FUNCTIONS OF TAXATION?

6 5. ENCOURAGE POSITIVE BEHAVIOR AND DISCOURAGE NEGATIVE BEHAVIOR NEGATIVE BEHAVIOR WHAT ARE THE FUNCTIONS OF TAXATION?

7  INCOME TAX  PAYROLL DEDUCTIONS  EXCISE TAX  SALES TAX  CAPITAL GAINS TAX  PROPERTY TAX  ESTATE TAX  TARIFF  SURCHARGE  IMPACT FEE  USAGE FEE  TOLLS TYPES OF TAXES

8  ABILITY TO PAY PRINCIPLE  ABILITY TO PAY PRINCIPLE: THE MORE YOU ARE ABLE TO PAY IN TAXES THE MORE YOU SHOULD PAY  BENEFITS RECEIVED PRINCIPLE  BENEFITS RECEIVED PRINCIPLE: ONLY THOSE PEOPLE WHO BENEFIT FROM THE TAX MONEY RAISED SHOULD HAVE TO PAY THE TAX PRINCIPLES OF TAXATION

9  PROGRESSIVE  PROGRESSIVE: WEALTHY TAXPAYERS PAY A GREATER PERCENTAGE THAN PEOPLE WITH MORE MODEST INCOMES.  PROPORTIONAL  PROPORTIONAL: EVERY TAXPAYER PAYS THE SAME PERCENTAGE REGARDLESS OF THEIR INCOME.  REGRESSIVE:  REGRESSIVE: EVERY TAXPAYER PAYS THE SAME AMOUNT OF TAX REGARDLESS OF THEIR INCOME. WEALTHY INDIVIDUALS PAY A SMALLER PERCENTAGE OF THEIR INCOME THAN POORER INDIVIDUALS. BURDEN OF TAXATION

10  MAINTAINING THE LEGAL AND SOCIAL FRAMEWORK  PROVIDING PUBLIC GOODS AND SERVICES  MAINTAINING COMPETITION  REDISTRIBUTING INCOME  CORRECTING FOR EXTERNALITIES  STABILIZING THE ECONOMY THE ECONOMIC FUNCTIONS OF GOVERNMENT

11 MAINTAINING THE LEGAL AND SOCIAL FRAMEWORK

12 PROVIDING PUBLIC GOODS AND SERVICES

13 MAINTAINING COMPETITION

14 REDISTRIBUTING INCOME

15 CORRECTING FOR EXTERNALITIES

16 STABILIZING THE ECONOMY


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