1 / 15

Understanding Taxation and Budgeting: The Mechanisms of Law and Spending

Delve into the intricate process of how bills transform into laws and explore the nuances of taxation, from progressive to regressive taxes, as well as the creation of the federal budget.

wang-pruitt
Download Presentation

Understanding Taxation and Budgeting: The Mechanisms of Law and Spending

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 a Bill Becomes a Law Play “The making of a Law”- 20 minutes

  2. Page 344

  3. Taxes “What we pay for civilized society” Oliver Wendell Holmes

  4. Power to Tax • Expressed constitutional limitations • Taxes may be levied only for public purposes • Export taxes are prohibited • Direct taxes must be equally apportioned among the states according to their populations • Indirect taxes must be levied at the same rate throughout the country.

  5. Power to Tax • Implied limitation on the power to tax State and local governments • The Federal Government • may not tax State or local governments in the exercise of their governmental duties • Federal can’t tax State’s for revenue made through • Vehicle registration • Property taxes • may tax nongovernmental State and local activities • tax on State-sold liquor

  6. Progressive Taxes • Progressive- tax levied according to level of income • Income taxes- tax levied on the individuals salary or wages (income) • Income Tax brackets in U.S. • $0 - 7,550 10% • $7,550 - 30,650 15% • $30,650 - 74,200 25% • $74,200 - 154,800 28% • $154,800 - 336,550 33% • $Above 336,550 35%

  7. Bush tax cuts

  8. Regressive Taxes • Regressive- tax levied at a flat rate • Social security- 6.2% on earnings up to $94,200 • A person who makes $30,000 a year pays $1,860 (30,000*.062) in tax or 6.2% of wagesb. A person who makes $200,000 a year pays $6,045 (97,500*.062) in tax or 3% of wagesc. A person who makes $500,000 a year still pays $6,045 in tax (97,500*.062) or 1.2% of wages • Lower incomes families hit harder

  9. Federal Budget

  10. How is the federal budget created? “No money shall be drawn from the treasury, but in consequence of appropriations made by law” Article I sec. 9

  11. Two Types of spending • Controllable spending (Discretionary) • Congress and the President decide how much will be spent each year • Appropriations- assigning to particular use • Military equipment • Environmental protection

  12. Uncontrollable Spending • Uncontrollable spending- 80% of spending • Mandatory uncontrollable spending • Interest on public debt • Entitlements- Benefits that must be paid to all those who meet the eligibility requirements • Social security • Medicare • Medicaid • Food stamps • Unemployment insurance

More Related