Government Spending Chapter 10. Bellringer List 3 examples of Foreign and Domestic policies.

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Presentation transcript:

Government Spending Chapter 10

Bellringer List 3 examples of Foreign and Domestic policies

How does the government fulfill the following roles? Employer, Consumer, Producer Employer –Teachers, police officers, postal workers, government agencies Consumer –Hires contractors, –purchases manufactured goods Producer –Provide a good or service –Education, mail service, security

Income Tax Bracket Income tax is a Progressive tax-Pay a greater percentage the more money you make 2014 Tax Brackets (for taxes due April 15, 2015) Tax rate Single filers Married filing jointly or qualifying widow/widower Married filing separatelyHead of household 10%Up to $9,075Up to $18,150Up to $9,075Up to $12,950 15%$9,076 to $36,900$18,151 to $73,800$9,076 to $36,900$12,951 to $49,400 25%$36,901 to $89,350$73,801 to $148,850$36,901 to $74,425$49,401 to $127,550 28%$89,351 to $186,350$148,851 to $226,850$74,426 to $113,425$127,551 to $206,600 33%$186,351 to $405,100$226,851 to $405,100$113,426 to $202,550$206,601 to $405,100 35%$405,101 to $406,750$405,101 to $457,600$202,551 to $228,800$405,101 to $432, %$406,751 or more$457,601 or more$228,801 or more$432,201 or mor Read more: Follow on Twitter | Bankrate on Facebook on TwitterBankrate on Facebook

W-2 form—Report of one’s income; used to file taxes

1040 form

Taxes Income Taxes Sales taxes Sin taxes Property taxes Fees Incidence of a tax – the final burden of the tax.

Homestead Exemption in Louisiana--No property taxes on the first $75,000 of your first home. Parishes in Louisiana collect an average of 0.18% of a property's value. (TX property tax is over 3%) Lowest property tax in the country

taxes-owner-occupied-housing-state taxes-owner-occupied-housing-state

Federal Government Spending Major Categories 34% Social Security 34% Social Security 27% Medicare and Health 27% Medicare and Health 16% National Defense 16% National Defense 6% Interest on Debt 6% Interest on Debt

State Spending

Local Government Spending

Where does federal revenue come from?

Revenue for State Government State –33% Individual Income Taxes –26% Sales Tax –24% Intergovernmental Revenue

Local Government Revenue Local (Baton Rouge, 2013)

Deficit vs. Debt Federal deficit – Congress spends more money than the governments has. When the federal government runs a deficit, it must borrow money (debt). Borrows by selling bonds to the public. Federal debt – the total amount borrowed from investors to finance deficit spending

Much of the federal debt is owed to ourselves; when the government needs money it borrows in form of bonds. Larger the debt, the more interest we pay, more taxes, less money for us to spend on other things. 77% of US bonds are owned and held by citizens and institutions % of the federal debt is owned by foreign investors.

Frontline video: 10 trillion and counting