1. TAXES

2. HAVE WE ALWAYS HAD TAXES???
1794 – First Tobacco Tax [$.08/lb]
2009: SC = $.07/pack; RI = $3.46/pack
1913 – First Income Tax
1% up to $20,000; 2% up to $50,000; up to
7% over $500,000
Flat Tax rates regardless of filing status

3. 1921 – First Sales Tax – West Va.
1940 – more than 40 states
Today: NO sales tax in Alaska, Delaware, Montana, N. Hampshire or Oregon
1937 – Social Security Tax
2% of income; currently 12.4%

4. So, Who Pays Taxes?
In 2010, >60% of the Federal Revenue came from individual Income Tax Returns
The 80% who earned 40% of the total wealth, paid 36% of the taxes while the top 5% who earned 36% of the total wealth, paid 48% of the taxes!!
In 2010, <10% of the Federal Revenue came from Corporate Income
Tax Returns

5. What are Tax Breaks and Who Benefits??
*Tax Break: any item which avoids taxes including exemptions, deductions or credits
Child care, medical expenses, job search, etc. – intended to benefit lower incomes
BUT…also include capital losses, tax exempt investments, employee health costs, overseas income, etc. ONLY used by wealthy…
Top 20% of taxpayers cost US government more than $751 BILLION in 2011!!!

6. How Does Washington Spend Our Money??

7. What About State and Local Spending???

8. How Does Our Tax System Compare to Other Nations???