Government spending

What would happen if we paid all of our taxes at the end of the year? GOVERNMENT WOULD STOP FUNCITONING AND PEOPLE WOULD STURUGGLE TO PAY THEIR TAXES Government uses a pay as you go system (aka the taxes taken out of a persons paycheck)

How The Gov. takes your taxes Tax Withholding: taking payments out of your pay before you receive it (your employer does this and sends it to the gov.) This is an estimate of how much taxes you will owe for the year

Types of federal taxes Corporate income: Same as individual income tax just from a corporation Social security, medicare, unemployment (common to all checks)

Special taxes Excise: tax on the sale or manufacture of a good (ex gasoline, cigarettes, alcohol, T.V etc) Estate: tax on total :value of money and property of a person who has died (only applies to estates over 2 million) Gift: money or property given from one living person to another Import: also called a tariff

Where do you think most of the money from taxes goes?

What does the state spend our money on? Education: this include state colleges Public safety: fire, police Highways and transportation: roads, airports Public welfare: hospitals, water Arts and recreation: state parks and museums Administration Pensions Interest

IL Budget Total revenue 32.7 Billion Total spending 32.5 (we also have to pay 4.7 billion in debt services Big 3 expenditures Education 9.5 billion Healthcare 7.1 Billion Pensions 6.6 Billion

How does the state collect its money The Big 3 Sales tax: biggest source of revenue Income tax: just like the federal income tax Corporate income tax

Local revenue and spending Big 3 Revenue Property Tax Intergovernmental Non residential taxes Big 3 Spending Education Utility Police and fire