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Published byEdgar Dwight Modified over 10 years ago
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THE GOVERNMENT, TAXATION, & ECONOMIC ACTIVITY CE.13C
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QUESTION How does the government influence economic activity?
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ECONOMIC ACTIVITY taxes, borrows, and spends The government taxes, borrows, and spends to influence economic activity.
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GOVERNMENT TAX CYCLE Government tax increases reduce the funds available for individual and business spending; tax decreases increase funds for individual and business spending.
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GOVERNMENT BORROWING Increased government borrowing reduces funds available for borrowing by individuals and businesses; decreased government borrowing increases funds available for borrowing by individuals and businesses. US Debt- http://www.usdebtclock.org/http://www.usdebtclock.org/
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GOVERNMENT SPENDING Increased government spending increases demand, which may increase employment and production; decreased government spending reduces demand, which may result in a slowing of the economy.
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GOVERNMENT SPENDING Increased government spending may result in higher taxes; decreased government spending may result in lower taxes.
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THE 16 TH AMENDMENT The 16th Amendment to the Constitution of the United States of America authorizes Congress to tax personal and business incomes.
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REVIEW Describe the impact of taxation, including an understanding of the reasons for the 16th Amendment, spending, and borrowing.
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