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Career, Income, and Taxes

Career, Income, and Taxes. Demand. How much people want to purchase of a good given its price Law of demand= as price goes down, quantity demanded goes up. Supply. How many goods are available for purchase at a given price Law of supply: as price goes up, more goods will be supplied.

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Career, Income, and Taxes

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  1. Career, Income, and Taxes

  2. Demand How much people want to purchase of a good given its price Law of demand= as price goes down, quantity demanded goes up

  3. Supply How many goods are available for purchase at a given price Law of supply: as price goes up, more goods will be supplied

  4. Supply and Demand Terms Equilibrium- The price and quantity at which supply and demand are equal Shortage- when demand is greater than supply Surplus- when supply is greater than demand

  5. Shifts in Supply and Demand www.youtube.com/watch?v=Ng3XHPdexNM

  6. Shifts In supply In Demand • Productivity • Technology • Subsidies • Weather • Taxes • Changes in taste and preference • Changes in income • Changes in expectations • Changes in the prices of related goods • Population size and composition

  7. Shifts in Supply and Demand

  8. Supply and Demand of Workers

  9. Journal 09/13/13 According to the law of supply and demand, what causes prices to rise? What causes prices to fall? Think about this concept related to the supply of workers in an economy. What is the “price” for a worker? What will happen if there is a shortage of workers? What will happen if there is a surplus of workers?

  10. Earning Power

  11. Income Money received for work or investments Investment- expense of money with the expectation of getting a profit later

  12. What Makes a Job Valuable? Society needs it There is a short supply or large demand It is more difficult to get the necessary skills

  13. Factors the Affect Income • the level of education, training, and experience that is required to do a particular job • the level of demand that exists for the type of labor you are skilled/trained/educated to provide • the number of others who have similar or better skills who can compete for the job • how good you are at what you do • how long you have been working — your experience, your seniority • your work habits, reliability • the state of the economy

  14. How Education Influences Income High School Diploma- $1.3 million Some college- $1.55 million Bachelor’s Degree- $2.27 million Master’s Degree- $2.67 million Doctoral Degree- $3.25 million Professional Degree- $3.65 million Average lifetime earnings

  15. Uneducated = UnemployedEducation pays in higher earnings and lower unemployment rates Source: www.bls.gov: Employment statistics of the civilian population 25 years and over by educational attainment.

  16. An Employer’s Perspective “Someone who couldn’t complete high school probably finds it difficult to complete any task.” “High school can be hard work. A high school dropout is probably scared of a little hard work.” “A high school dropout didn’t learn some things that are needed to be good at this job!” “How bright can a high school dropout be?”

  17. Some Things About School Are So…Finish the sentence “Some things about school are so…” by listing those things about school you think are difficult or hard, those that are comfortable or so-so, and those that are easy for you. Comfortable Difficult Comfortable Comfortable Comfortable Comfortable Easy Difficult Difficult Difficult Difficult Difficult Easy Easy What actions can you take to improve your ability and skill in areas you find difficult? What is your plan of action, your timeline, for improvement?

  18. Calculate the difference between… Calculate the difference in salary between: • A high school dropout and a high school graduate. • A high school graduate and a graduate from a two-year college program (associate’s degree). • A two-year college graduate and a four-year college graduate (bachelor’s degree). • A four year college graduate and an individual with an advanced degree (master’s or doctorate).

  19. Calculate the lifetime earnings of each level of educational attainment using the table below. Have students assume each person works until 70 years of age. Other assumptions include: • The high school dropout begins full-time work at age 16. • The high school graduate begins full-time work at age 18. • The graduate of the two-year college begins full-time work at age 20. • The graduate of the four-year college begins full-time work at age 22. • The graduate with a master’s degree begins full-time work at age 24.

  20. Write three paragraphs summarizing what you have learned about careers and income. Include comments about employer’s perspectives and your feelings about school. Conclude with your educational goals and how they will influence your income.

  21. Entrepreneurism

  22. What is an entrepreneur? • A person who organizes, manages, and assumes the risks of a business or enterprise.

  23. RISKS No guarantees No regular paycheck No boss Long hours Assume debt of business REWARDS Be your own boss Keep profits Control Satisfaction Pursue talent and creativity Entrepreneurship

  24. Characteristics of Entrepreneurs • Willing to take risks • A person who creates a business from scratch. • Self employed • Strong sense of discipline • Be your own boss • Beat the competition

  25. Who are some entrepreneurs you might know? • Walt Disney

  26. Who are some entrepreneurs you might know? • Oprah Winfrey

  27. Who are some entrepreneurs you might know? • Donald Trump

  28. Writing a Resume

  29. Things to Include Your name Contact Information- definitely email and phone, address is optional

  30. Things to Include Objective- what you hope to accomplish with your job search Prior Experience- List the title, when you worked there, and specific accomplishments while there

  31. Things to Include Education- list where you went to school, during what years, and the degree you earned (or anticipated graduation date) Skills/Accomplishments- any other bragging rights that might help you with the job you are applying for

  32. Formatting Should look professional Put dates in chronological order Can have heading, but should not have borders Simple, easy-to-read font Text should not be too large or too small Use normal size paper in a neutral color

  33. Sources of Income

  34. Sources of Income • Wages(a fixed regular payment by an employer to an employee) and Salaries/Allowances • Investment Income • Self-employment • Inheritance • Gifts • Awards • Lottery!

  35. Employee benefits – • The additional services offered and paid in part by employers. • Ex. Insurance- a guarantee of compensation for loss or damage.

  36. Common Employee Benefits • Paid Vacation Holidays (Personal Leave) • Paid Sick Days (Sick Leave) • Health Insurance • Disability Income Insurance • Life Insurance • Dental/Vision Insurance • Profit Sharing

  37. Common Employee Benefits • Payroll Savings Plan • Stock Option Purchase • Registered Pension Plan- payment made during retirement • Retirement(leaving a job) • Tuition Reimbursement • Travel Expenses • Spouse Benefits • Access to Financial Advice

  38. Economic Conditionshave a great influence on how consumers spend money. • Consumer Prices • Consumer Spending • Interest Rates

  39. Cost of living The average cost of the necessities of life in a given area

  40. What affects cost of living? • Geographic area • Coastal areas tend to be more expensive than inland • Proximity to needs (water, food, fuel) • The farther away from goods and services, the more they cost • How many people live in an area • Urban areas tend to be more expensive than rural areas

  41. Understanding Taxes

  42. What aretaxes? • Taxes are required contributions to state revenue, levied by the government on personal income and business profits or added to the cost of some goods, services, and transactions.

  43. “Taxes are what we pay for civilized society” Oliver Wendell Holmes Jr., 1904

  44. Early Taxes • Cooking Oil, Foreigners, • Slaves (Ancient Egypt) • Sales, Inheritance, Imports, • Exports (Ancient Rome) • Beards, Beehives, Boots, • Souls (Russia, 1702) • Bachelors (England, • 1695; Missouri, 1820)

  45. Other Taxes • Property tax • Sales tax • Gasoline tax • Local/City taxes

  46. Taxes Fund Public Goods and Services Health Care for Elderly National Defense Social Services State and Local Police Public Education Financial Aid

  47. The Federal Government Dollar- Where It Comes From Personal Income Taxes 43% Social Security, Medicare, and Unemployment and other Retirement Taxes 35% Excise, Customs, Estate, Gift, and Miscellaneous Taxes 7% Corporate Income Taxes 7% Borrowing to Cover Deficit 8%

  48. The Federal Government Dollar- Where It Goes Social Security, Medicare, and other Retirement 38% Law Enforcement and General Government 3% National Defense, Veterans, and Foreign Affairs 20% Social Programs 21% Physical, Human, and Community Development 10% Net Interest on the Debt 8%

  49. What is taxmoney used for? • Bridges • Road maintenance • Research • Education • Armed services, national defense, veterans, and foreign affairs • Retirement income for elderly • Social programs • Physical, human, and community development • Law enforcement • Interest on the national debt

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