1. TAXES AND YOU The American Taxation System

2. “The Art of Taxation is to Pluck the Goose Without Making it Squawk” - Colbert 1778

3. Net and Gross Income Taxes – Required payments of money to governments that are used to provide public goods and services. Net – Take home pay Gross – Base Pay

4. Primary Tax Base Consumption Taxes Sales – Tax on any item sold. Excise Tax – Taxes on the sale of specific products or transactions.

5. Wealth Tax Property Most important source of income for local governments. Reappraised every 6 years. Updated every 3 years.

6. Progressive and Regressive Taxes Progressive – Taxes that take a larger % of income from higher-income groups than low-income groups. Regressive – Taxes that take a larger % of income from lower-income groups than higher income groups.