1 / 15

How can the U.S. significantly decrease the deficit

How can the U.S. significantly decrease the deficit. 1) 2) 3) 4). Taxes. Spending. Tax Rate Introduction. U.S. Federal Income Tax System. 3 Types of Taxes. Progressive- Tax rate increase as income increases Example: Income Taxes Regressive-

perry-mejia
Download Presentation

How can the U.S. significantly decrease the deficit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. How can the U.S. significantly decrease the deficit 1) 2) 3) 4) Taxes Spending

  2. Tax Rate Introduction U.S. Federal Income Tax System

  3. 3 Types of Taxes • Progressive- • Tax rate increase as income increases • Example: Income Taxes • Regressive- • Consumes larger % of lower income worker’s salary • Example: Gasoline Tax, Bridge Tax • Flat • Same % for everyone • Example: Sales Tax, Some State income taxes

  4. Purpose/Goals of an INCOME TAX

  5. Tax Worksheet • History of Income Taxes • Taxes people pay

  6. EVERY taxpayer pays 10% on first $8,350 of income Federal Income Tax • Progressive Income Tax As income% Tax Bracket Example: If you Earn $100,00 (single) ($ 8,350   -   0 )  x .10 :      $   835 (33,950   -   8,351)  x .15 : 3,840 (82,250   -   33,951)  x .25 : 12,075 (100,000   -   82,251 )  x .28 : 4,970 Total:   $ 21,720 or 21.7%

  7. 2 Wage Earners Mary earns $60,000 John earns $360,000 $5,855 $2,520 $870 $1,617 $49,137 $4,094 $10,863 18.0% Federal Taxes Social Security Medicare California Tax Take Home Pay Pay Per Month Total Taxes Paid Overall Tax % Rate $91,025 $4,485 $5,220 $32,123 $226,965 $18,913 $133,035 37.0% http://www.paycheckcity.com/calculator/netpay/us/california/calculator.html

  8. Numbers to Know for Exam • Top 1% of Taxpayers($343,000 + Up) • Pay 38% of all taxes • Earn 20% of all income (1.4 million households) • Top 10% of Taxpayers($115,000 + Up) • Pay 70% of all income taxes • Earn 46% of income • Bottom 50% of Taxpayers($33,000 + Below) • Pay 3% of Income Taxes • Earn 13% of Income

  9. Top 1% pay more taxes but The income Gap has widened last 30-Years

  10. EQUAL % tax cuts What best stimulates economic growth?

  11. Equal % Tax Cuts • Example: 10% tax cut for ALL taxpayers • Who gets more nominal dollars (money) • Earn $120,000 Taxes $36,000Refund $3,600 • Earn $24,000 Taxes $3,000Refund $300

  12. Fiscal Cliff December 2012

  13. Bush Tax cuts are now permanent New top bracket

More Related