ECONOMIC POLICYMAKING

Who controls the Economy today? The President AND Congress!

The Federal Economy The PresidentThe Congress 1921 Budget & Congress hands over Accounting Actthe reigns to the President to prepare the budget CEA- Council of Economic Advisors (3 members) OMB- Congressional Budget Office of Management & Budget & Impoundment Act 1974 (over 500 workers) CBO- Congressional Budget Office

Market vs. Non Market Economies

ADAM SMITH Government keep your hands out of Business! ADAM SMITH

LAISSEZ FAIRE

JOHN MAYNARD KEYNES We can control the Economy! Aggregate Demand can be controlled through Monetary and Fiscal means.

FISCAL POLICIES SPENDING & TAXING

MONETARY POLICIES Money Supply & Interest Rates

The Federal Reserve Established Members all appointed by the president 14 yr. Tenure Federal Chairman BEN BERNANKE

TAXES WE PAY Property- pays for education, police, and fire protection Excise- ex: gasoline tax Personal- tax on your income Sales Tax- State and Local OH= 6% Geauga County- 6.5% Cuyahoga County- 7.5%

TAXES WE PAY Payroll Taxes- Social Security, Medicare etc. Licenses- Social Insurance- Social Security User Fees- turnpike tolls

Ohio’s State Income Taxes How Ohio State income tax rates are structured The tax table below will show in detail the Ohio state income tax rates by income tax bracket(s). There are 9 income tax brackets for Ohio. If your income range is between $0 and $5,000, your tax rate on every dollar of income earned is 0.587%. If your income range is between $5,001 and $10,000, your tax rate on every dollar of income earned is 1.174%. If your income range is between $10,001 and $15,000, your tax rate on every dollar of income earned is 2.348%. If your income range is between $15,001 and $20,000, your tax rate on every dollar of income earned is 2.935%. If your income range is between $20,001 and $40,000, your tax rate on every dollar of income earned is 3.521%. If your income range is between $40,001 and $80,000, your tax rate on every dollar of income earned is 4.109%. If your income range is between $80,001 and $100,000, your tax rate on every dollar of income earned is 4.695%. If your income range is between $100,001 and $200,000, your tax rate on every dollar of income earned is 5.451%. If your income range is $200,001 and over, your tax rate on every dollar of income earned is 5.925%. Income tax brackets data last updated March 3rd, 2009.

2008 Tax Brackets for Single Taxpayers 2008 tax rates and brackets These tables can help you estimate your tax bill For single taxpayers If taxable income is at least...But not more than...Your tax is: $0$8,02510% of the amount over $0 $8,026$32,550$ plus 15% of the amount over $8,025 $32,551$78,850$4, plus 25% of the amount over $32,550 $78,851$164,550$16, plus 28% of the amount over $78,850 $164,551$357,700$40, plus 33% of the amount over $164,550 $357,701No limit$103, plus 35% of the amount over $357,700

2008 Tax Brackets for Married Couples For married couples filing jointly* If taxable income is at least...But not more than...Your tax is: $0$16,05010% of the amount over $0 $16,051$65,100$1,605 plus 15% of the amount over $16,050 $65,101$131,450$8, plus 25% of the amount over $65,100 $131,451$200,300$25,550 plus 28% of the amount over $131,450 $200,301$357,700$44,828 plus 33% of the amount over $200,300 $357,701No limit$96,770 plus 35% of the amount over $357,700 * Or qualifying widow or widower

2008 Tax Brackets for Heads of Household For heads of households If taxable income is more than...But not more than...Your tax is: $0$11,45010% of the amount over $0 $11,451$43,650$1,145 plus 15% of the amount over $11,450 $43,651$112,650$5,975 plus 25% of the amount over $43,650 $112,651$182,400$23,225 plus 28% of the amount over $112,650 $182,401$357,700$42,755 plus 33% of the amount over $182,400 $357,701No limit$100,605 plus 35% of the amount over $357,700

STATE TAXES ON INDIVIDUALS See document in Ch. 18 folder SEE My Pay Stub--- in ch. 18 folder

See ch. 18 folder for Receipts and Outlays 2004