1. “The only certainties in life are death and taxes” Benjamin Franklin
TAXES……. AND WHY WE HATE THEM

2. WHAT KINDS OF TAXES DO WE PAY?
INCOME TAXES - a tax on our earnings by the federal gov’t, and some state and cities as well.
EXCISE TAXES - a tax on the manufacture or sale of certain items, such as alcohol, tobacco, and gasoline.
SALES TAXES – a tax added to the purchase of most items. The highest in the US is California at 8.7%. NJ is at 7%. Many states have no sales tax.
PAYROLL TAXES – taxes businesses pay on their payrolls.
PROPERTY TAXES – a tax based on the value of your home and land paid to local government.
ESTATE & GIFT TAXES – taxes paid on large gifts, and when you die.
USER FEES – fees paid at parks, or for passports.

3. What are our taxes spent on?

4. To help the less fortunate….
This is called Income Redistribution.

5. Military

6. Highways, Airports, Railroads, etc.
Infrastructure
Highways, Airports, Railroads, etc.

7. To help regions of the country or industries
During the current recession, the federal government gave billions to help the auto industry.

8. To change our behaviors
Cigarettes and alcohol are heavily taxed to discourage use.

9. Types of Income Tax Progressive: The more you make, the more you pay.
Flat: Everyone pays the same percentage of their income.
Regressive: People who make less pay a higher percentage of their income.

10. How much federal tax do we pay
How much federal tax do we pay? (the below numbers have been rounded off to simplify understanding)
If you earn…..
Up to $7500……….
$ $30,000……….
$30,000 - $75,000……
. $75,000 - $150,000……..
$150,000 - $330,000………..
$330,000 and up…….
Then you pay….
10%
15%
25%
28%
33%
37.5%

11. SUMMARY
Americans pay a variety of taxes to different layers of government
Taxes are used for a variety of reasons
No one likes to pay taxes, but we must.
Taxes are the cost of citizenship.
How would the country function without taxes?