Chapter 22, Opener Where do your taxes go? Income Taxes and Government Spending

Chapter 22, Opener After completing the note taking guide, I can: -Describe a progressive tax -Given an income amount, determine a tax bracket by reading a tax schedule -Identify the purpose of various tax forms Learning Targets:

Chapter 22, Opener I can: -Identify products and services provided by tax dollars by creating a collage of tax benefits Learning Targets:

Progressive tax: tax that takes a larger percentage from people who earn more money than it does from people who earn less money.

Chapter 22, Opener Tax Brackets  The federal income tax is a progressive tax, which rises with the amount of taxable income.  Your income puts you in a specific tax bracket.

Chapter 22, Opener Tax Brackets  If you are single, at what rate would you pay taxes on income over $30,650 and less than $74,200?

Chapter 22, Opener Tax Forms

Chapter 22, Opener Withholdings and Tax Returns  Employers collect taxes by withholding money from your paycheck based on an the allowances on your W-4 form.

Chapter 22, Opener Withholdings and Tax Returns  After the year ends, employers give their employees a W-2 form which shows how much income tax was paid.

Chapter 22, Opener Withholdings and Tax Returns  Employees then fill out a tax return (1040 form) to send to the federal government.

Chapter 22, Opener Federal Spending  The federal government spends the funds it collects from taxes and other sources on a variety of programs.

Chapter 22, Opener Federal Aid  Federal taxes are sometimes used to help state and local governments.  State and federal governments share the cost of Medicaid, unemployment insurance, education, lower-income housing, highway construction, and dozens of other programs.  States also rely on federal aid for disaster relief.

Chapter 22, Opener Where are State Taxes Spent?  Education  Every state spends taxpayer money to support at least one public state university.  They also provide financial help to local governments for public elementary and secondary schools.  Public Safety  State police enforce traffic laws and help motorists in an emergency.  State governments build and run corrections systems.  Public Welfare  State funds support hospitals and clinics and unemployment benefits.

Chapter 22, Opener Where are State Taxes Spent?  Highway and Transportation  State crews resurface roads and repair bridges.  States pay some of the cost of facilities like waterways and airports.  Arts and Recreation  States fund parks, nature reserves, museums, and art and music programs.  Administration  State governments spend money to keep the government running.  Revenues pay for state workers’ salaries.