Levels of Government

POLITICAL REFORM This progressive goal focused on improving the way the government operated.

Cities faced some of the worst problems of the industrial age. Political machines and bosses rewarded supporters with jobs and gifts, and they openly bought votes with favors and bribes. Patronage – a system in which government jobs are given to people recommended by political party leaders and office holders

The City Commission system was created which assigned a team of experts to oversee different city departments, getting rid of corruption and ensuring things were running well.

In many states, ordinary citizens won political reforms.

Hiram Johnson, the governor of California from 1911 to 1917, pushed for the constitutional amendments for initiative, referendum and recall that California voters ratified in 1911.

An initiative is a bill (proposal for a new law) that is created by the common people, not by lawmakers. Proposition 8 was an example of an initiative because it was put on the ballot by ordinary citizens. This was made possible by Hiram Johnson.

A referendum is a vote on the initiative, where everyday citizens vote to approve or not approve the law proposed by other ordinary citizens. In the Prop 8 referendum, voters approved the initiative.

A recall enabled voters to remove public officials from elected positions by forcing them to face another election before the end of their term.

The 17 th Amendment was another huge political reform, which allowed for a popular election of senators by the people, instead of by other lawmakers.

Missouri Plan Adopted 1940 in Missouri  other states A committee of judges, lawyers, and ordinary citizens prepare a list of qualified judges – Governor then appoints a judge from this list – Judge must be “elected” by voters at the next election to serve the full term.

Forms of City Government What are the 4 different types? What are some major differences between them?

Taxes 19

What are Taxes? Why does the government tax? Two purposes: 1.Finance government operations. Public goods-highways, defense, employee wages Fund Programs- welfare, social security 2. Influence economic behavior of firms and individuals. Ex: Excise taxes on tobacco raises tax revenue and discourages the use of cigarettes. Taxes – mandatory payments made to the government to cover costs of governing. 20

Three Types of Taxes 1. Progressive Taxes -takes a larger percent of income from high income groups (takes more from rich people). Ex: Current Federal Income Tax system 3. Regressive Taxes –takes a larger percentage from low income groups (takes more from poor people). Ex: Sales tax; any consumption tax. 2. Proportional Taxes (flat rate) –takes the same percent of income from all income groups. Ex: 20% flat income tax on all income groups 21

What kind of taxes are these? (THINK % of Income) 1.Toll road tax ($1 per day) 2.State income tax where richer citizens pay higher % 3.$.45 tax on cigarettes 4.Medicare tax of 1% of every dollar earned % California sales tax 22 Three Types of Taxes

Federal Income Tax Debate Equal Tax of $350 per week (Regressive Tax) Income Amount of Tax % Amount to live on $200$ % - $150 )[crime?] $350$ % $0 $500$350 70% $150 $1,000$350 35%$650 $5,000$350 7%$4,650 T ax tax of 20% per week (Proportional Tax) Income Amount of Tax Amount to live on $200$40 $160 $350$70 $280 $500$100 $400 $1,000$200 $800 $5,000$1,000 $4,000 23

Federal Income Tax Debate This is our current system. Is it fair? The Progressive tax system is the most effective way to fight this market failure

The Laffer Curve 25 % Tax Rate Tax Revenue If the government increase taxes rates tax revenue will increase If the tax rate becomes too high, tax revenue will fall since workers have no incentive to work harder