+ Welcome C&E Students!!! What is your favorite TV show?

+ Mental Floss Objective: 7.2 – Evaluate how the government collects and distributes tax revenue. Vocab: power of the purse Income Tax Corporate Income Tax Capital Gains Tax Excise Tax Regressive Tax Payroll Tax Estate Tax Questions: 1. What is the difference between mandatory and discretionary spending? 2. When does the fiscal year run? 3. What is an example of an entitilement?

+ Reminders Quiz tomorrow (12/9) on taxes (7.2) Budget Project Due 12/14 Unit 7 Test will be on 12/16 If you are missing an assignment, quiz or test in the grade book, you need to come see me ASAP to work out a plan to make up. If you have missed more than 10 days of school, you only have 9 days left to complete recovery.

+ 7.2 – Revenue and Expenditures of the Gov’t Objective: Evaluate how the government collects and distributes tax revenue

+ II. Constitution and Taxes A. Article I, Sec. 8, Clause 1 – First power given Congress 1. “power of the purse” – Congress’ ability to set the spending and taxing policies of the nation. 2. Used to run the government

+ B. Limitations 1. No taxes on churches (Any federally recognized religion) 2. Taxes may be used for public purposes only

+ III. Types of Taxes A. Income Tax 1. Allowed by 16 th Amendment 2. Type of Direct Tax – paid directly to the gov’t (ex: income or property tax) 3. Progressive Income Tax – percentage paid goes up with income (determined by “brackets”)

+

+ 4. Corporate Income Tax – extra tax on businesses’ profits (corporations are treated like individuals) 5. Capital Gains Tax – on stock market profits

+ B. Excise Tax 1. these are taxes on goods and services 2. Type of Indirect Tax – you only have to pay these if you want to buy the goods or services (ex: gasoline, tobacco, telephone) Regressive Tax – percentage paid goes down the more money your make

+ C. Payroll Tax 1. Taxes taken out of your paycheck each month 2. Social Security – Money for retires and disabled 3. Medicare – healthcare for elderly

+ D. Estate Tax 1. Tax on inheritance – if you want to leave someone your property/money after you die a certain percentage will be taken by the government

+ Read the Icivics Sheet on Taxes and answer the following questions on your own paper Questions to Ponder: 1. Do you think our progressive tax system is fair? Why or why not? 2. Do you think that poor people are not paying enough taxes or do you think the rich need to pay more of their share? 3. Do you think the government does too much or too little in helping the poor of this country? When you are finished, bring your answers to Mrs. Marquez and she will give you your Unit 6 Test Averages: 2nd Block – 92% 3 rd Block – 92% 4 th Block – 84% Let’s Read

+ Knight Time Grab a Partner and move desks together You will be working this week on a review packet for your final. If you don’t know the answer, look IT UP. Use your notes, use the book, use your partner!!!!