1. Day 27 Test Tomorrow!!!!!!!!!!!
Taxation

2. Government and Money
The government needs money in order to operate and provide services.
It spends a lot of money on programs meant to benefit the country, such as public education, highways, public transportation, public assistance, and many others.

3. Expenditures and Revenue
Government expenditures refers to what the government spends its money on.
To pay for these, our system has put a number of methods for obtaining this money.
The money obtained by the government is referred to revenue.
The primary sources of government revenue are various types of taxes, user fees, tariffs, fines, and government bonds.

4. National Budget
The federal government’s budget is called the national budget.
A budget is a list of expenditures, or ways in which money or paid out for a specific time period.
The President is responsible for planning the budget.
A government’s budget is determined by how much money comes in, or revenue, compared to how much it spends.

6. Balanced Budget
Many people believe that the national budget should be a balanced budget.
A government's budget is balanced if its income is equal to its expenditure.
But balancing the budget is hard, and many budgets, including this nation’s national budget, have a deficit .

7. Budget Deficit
A budget deficit occurs when the government spends more money than it brings in.
When the government spends more money than it earns and it must borrow, it is called deficit spending.
This part of fiscal policy, or how government makes policy about taxation and spending.

8. Budget Surplus
A budget surplus is money that is left over after all expenditures are paid.
The federal government often operates with a budget deficit.
The government can build up a national debt, which is the total amount the government has borrowed.

10. National Debt
The current national debt in the US is about $16.1 trillion!!!

12. Sources of Government Revenue Income Tax
The vast majority of the federal government’s revenue comes from the income tax.
The income tax was established with the 16th Amendment of the Constitution.
It takes a percentage of each person’s (or company’s) earned or unearned income.

13. Types of Income Tax
Progressive Tax – the more money a person makes, the higher tax percentage rate they must pay.
Regressive Tax – a higher proportion of a person’s income is paid the poorer the person is.
Proportional Tax – all taxpayers pay the same percentage no matter their incomes. This is also known as a Flat Tax

14. Tax Returns and the IRS
The government determines the income tax by a tax return.
Citizens and businesses must file your annual income.
It shows earnings and may include deductions, which are subtractions from the amount of income to be taxed, such as a business expense.
The Internal Revenue Service (IRS) oversees the nation’s taxation.

16. Excise and Estate Tax
An excise tax is charged on the production and consumption of particular goods and services, such as telephone, gas, and airline tickets.
The estate tax is paid upon the transfer of property through inheritance.
It does not tax the property itself, although the more a property is worth, the higher its tax burden will be.

20. Sales and Excise Tax
Sales tax is charged on the sale of goods or services.
Usually it is calculated as a percentage of the selling price.
North Carolina’s sales tax is 6.75%.
An excise tax is a hidden tax on certain items like gas, soft drinks, alcohol, and tobacco products.

21. Property Tax
Local governments assess a property tax on real estate based on the value of the property.
This helps fund local services such as the police department, fire department, and schools.
Most vehicles and real estate owned by citizens are valued for tax purposes of taxation.
This process is called tax assessment.

22. Property Tax
Tax on real estate based on its value
Corporate Income Tax
Tax on profits of a business
Personal Income Tax
Tax on individual earnings
Sales Tax
Tax on the sale of most goods and services
Estate Tax
Tax on the estate of someone who has died
Excise Tax
Hidden tax on certain goods
Inheritance Tax
Tax on property when it is inherited (over $675,000)