2. “Taxes are what we pay for civilized society” Oliver Wendell Holmes Jr., 1904

3. Taxes Fund Public Goods and Services National Defense State and Local Police Financial Aid Health Care for Elderly Public Education Social Services

4. Cooking Oil, Foreigners, Slaves (Ancient Egypt) Early Taxes Sales, Inheritance, Imports, Exports (Ancient Rome) Beards, Beehives, Boots, Souls (Russia, 1702) Bachelors (England, 1695; Missouri, 1820)

5. American Revolution caused debt The Power to Collect Taxes Tax was necessary to pay debt Article 1, Section 8 of the U.S. Constitution granted Congress power to tax

6. The Federal Government Dollar- Where It Comes From

7. The Federal Government Dollar- Where It Goes

8. Tax Avoidance versus Tax Evasion Tax Evasion: Failure to pay legally due taxes Tax Avoidance: Legal means of decreasing your tax bill

9. Information on taxpayer returns is private Taxpayer Rights Taxpayers have the right to appeal an IRS decision

10. “The income tax law is a lot of bunk. The government can’t collect legal taxes from illegal money.” Al Capone

11. “No Taxation without representation!”

12. Taxes and Early Civilization

13. Taxation in the Constitution

14. Whiskey Rebellion

15. War of 1812

16. Protective Tariff

17. Civil War Income Tax

18. 1913 Sixteenth Amendment

19. Social Security Act of 1935

20. Victory Tax of 1942

21. Fairness and Taxation

22. How to Measure Tax Fairness Ability to Pay Benefits Received

23. Ability to Pay

24. Taxes and Benefits Received

25. Flat Taxes Everyone pays the same fixed amount, such as sales tax

26. User Fees Fund public services.

27. Progressive Taxes Higher Income = Higher Taxes

28. Tax Brackets

29. Wealth and Income Income: wages,interest Wealth: houses, cars, stocks, savings

30. FICA & Social Security

31. Sales Tax Holiday