US E CONOMY Facts about state budget, taxes etc

F ACTS GDP approx 15 trillion (2011) GDP per capita 46, 844, 7th in the world Inflation 3,9% (2011) Population below poverty 15 % Unemployment rate 9% (2011)

M AIN I NDUSTRIES petroleum, steel, motor vehicles aerospace, telecommunications Chemicals creative industries electronics food processing, consumer goods lumber, mining Defense biomedical research and health care services computers and robotics

E XPORTS – 1,280 TRILLION USD (2010) Goods: agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8% capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0% consumer goods (automobiles, medicines) 15.0% (2009)

P ARTNERS Canada 13.2%; Mexico, 8.3%; China, 4.3%; Japan, 3.3% (2009)

I MPORT – 1,948 TRILLION USD (2010) Goods: agricultural products 4.9% industrial supplies 32.9% (crude oil 8.2%) capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery) consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys) (2009)

P ARTNERS China, 15.4%; Canada, 11.6%; Mexico, 9.1%; Japan, 4.9%; Germany, 3.7% (2009)

Largest trading country in the world As of 2010 – EU largest trading partner of US Canada, China and Mexico –largest individual trading nations One of the largest and most influential financial markets Worlds largest economy since 1870s

M IXED ECONOMY – STABLE GROWTH -stable overall GDP growth rate -low unemployment rate -high levels of research and capital investment

Public debt 14,972 trillion USD (99,7% of GDP) Revenues 2,302 trillion Expenses 3,601 trillion (2011) Credit rating Moody´s AAA Fitch AAA Standard & Poor´s AA+ (AAA)

R EASONS BEHIND US ECONOMIC GROWTH a large unified market a supportive political-legal system vast areas of highly productive farmlands vast natural resources (especially timber, coal and oil) a cultural landscape that valued entrepreneurship a commitment to investing in material and human capital a willingness to exploit labor

E CONOMIC FREEDOM A central feature of the U.S. economy is the economic freedom afforded to the private sector Economic decisions - the direction and scale of what the U.S. economy produces Relatively low levels of regulation and government involvement A court system that generally protects property rights and enforces contracts

E NTREPERNEURSHIP 29.6 million small businesses 30% of the world's millionaires 40% of the world's billionaires as well as 139 of the world's 500 largest companies

V ALUABLE INVESTMENTS IN SCIENCE AND INNOVATION Airplanes Internet, , cellphone Microchip, laser refrigerator, microwave, air conditioning LCD and LED technology assembly line supermarket, bar code electric motor ATM

E MPLOYMENT Approx million employed individuals US. Government - largest employment sector with 22 million Largest employer - small businesses (SMBs), representing 53% of workers 2nd largest - large businesses, they employ a total of 38% of the US workforce A total of 91% of Americans are employed by the Government accounts for 8% of all US workers Over 99% of all employing organizations in the US are small businesses

L ABOUR FORCEAND UNEMPLOYMENT Former immigrants, former slaves and their descendants make up the majority of labour force in US Unemployment rate is officially 9%, unoff 17 % Among youth 18,5% Among african-american young males 34,5% In Detroit 30% (after GM was closed)

S ECTORS / INDUSTRIES RETAIL – the major sector, leading US economy (Walmart, McDonalds, Amazon.com) ENERGY – US is the 2nd largest energy consumer in the world - fossil fuels: 40% petroleum, 23% coal, 23% natural gas - nuclear 8,4% and renewable energy 6,8% US is nr 1 oil importer - 70% reliant on foreign oil

S ECTORS / INDUSTRIES MANUFACTURING - worlds largest manufacturer – greater than Germany, France, India and Brazil combined. Leads airplane manufacturing. Main industries include petroleum, steel, automobiles, construction machinery, aerospace, agricultural machinery, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.

S ECTORS / INDUSTRIES AGRICULTURE - US controles 50% of worlds grain exports INTERNATIONAL TRADE – leading importer FINANCE – New York Stock Exchange is 3x larger than nay other stock exchange in the world (NASDAQ is nr 3) Trade deficit in 2010 was 635 billion USD.

REGULATIONS Regulations to control prices (price fluctuations): 1. State-regulated monopolies (set price levels) 2. Antitrust law – prohibiting merges that limit competition 3. Bank regulations – 2 levels, state and government level 4. Control over private companies (for health and safety purposes)- ex Food and Drug Administration

TAXES Taxes involve payments to at least 4 different levels of government: federal government State governments Local governments Counties, municipalities, townships The average marginal tax rate is about 40% of income.

F EDERAL TAXATION Income tax 10-35/15-35% Payroll tax (social insurance 2x(6,2/1,45%) Alternative minimum tax (AMT) 26-28% Estate tax Excise duty Gift tax Corporate tax Capital gains tax

S TATE AND LOCAL TAXES State income tax Sales tax (not VAT) 1-10% Use tax Property tax Land value tax All taxation rules vary widely by jurisdiction.

the federal personal income tax is progressive - a higher marginal tax rate is applied to higher ranges of income The federal payroll tax is a flat tax – for Social Security and Medicare 3 tax administrations on fereral level: Alcohol and Tobacco Tax and Trade Bureau (TTB) Internal Revenue Service (IRS) U.S. Customs and Border Patrol

S TATE BUDGET