C. Legal Forms of Business

    E. Pass through, pay lower personal tax rate.
 

     E. Much is Required by Existing Law

Source:
The Day Mandatory Spending By The 20US Government

 F. State and local government
        1. All have mandatory balanced budget laws making the accumulation of debt difficult.   

            2. Property Taxes are differ from state to state

What the 2018 elections mean for state and local spending

Property Tax Per Capita 2017

IV. Taxation Philosophies
        A. Ability to pay
           1. Those with the ability income or wealth pay more.
           2. Examples
               a. Income tax
               b. Sales tax
               c. Estate taxes
       B. Benefit Received User Taxes
           1. Those deriving a benefit from government activity pay
           2. Examples
              a. Gasoline taxes used for roads.
              b. Social security taxes are used to provide retirement and other benefits for participants.
       C. Pigovian tax system taxes market activity that generates negative externalities
       D. Readings  
           1. It's the Inequality Stupid 02/04/11 from Mother Jones
           2. Taxing the rich 4/11/11, NYT 
           3. Who pays Taxes in the USA? from the Big Pictures
 

Unit IV Review  Ability to pay and benefit received are taxing philosophies

 V. Tax Rate Types
        A. Progressive
            1. Tax rate increases as income increases
            2. Tax rate decreases as income decreases
            3. Those earning higher income pay a higher average tax rate.
            4. Example: Federal Income Tax                
                Note: Moving into a higher tax bracket does not result in your paying a
                higher rate on lower bracket earnings.
            5. How progressive is U.S. Federal Tax System?
                by Tom Piketty and Emmanuel Saez
            6. Merely Affluent vs. Truly Rich explores the change in top bracket taxes.
                NYT, Nov 2, 2010
            7. Policy Makers Often Overstate the Marginal Tax Rate 7/22/14
        B. Proportional
            1. Tax rate as percentage stays the same.
            2. Examples: Social Security taxes are proportional up to the maximum income
                level of about $76,200 because both employer and employee pay a constant
                rate of about 8%, but then the tax is regressive as the rate drops to zero

       C. Regressive 
            1. Amount paid divided by income drops as income increases.
            2. Happens one of two ways
                a. Rate drops as income increases (FICA after $76,200 in 2000) 
                b. Amount of tax is constant so at higher incomes, the effective
                    tax rate is lower (excise taxes on cigarettes, liquor, etc.)

Very-Rich Top 1% of Income Going Up
Their Taxes Down

     D. Passing Tax Incidence 
          1.Passing the burden of taxes onto others (consumers ultimately pay)
          2. Businesses and professionals try to do this
          3. The consumer bears most of the tax burden in a market economy
          4. Social Security and the Ghost of Ronald Reagan

     E. Taxing the Rich

     F.       "The “tax wedge”, the difference between total labor costs to the employer
                and employees’ take-home pay, rose by 0.2 percentage points to 35.9% in 2013.
                Of the 34 mostly rich countries in the OECD, 25 reported a rise in the tax burden in
                the past three years. The largest increase in the tax wedge was in Portugal.
                America’s wedge also grew as reductions in employees’ Social Security contributions
                expired. Overall, there has been little change in taxation for single workers, which in
                all OECD countries except Mexico and Chile is higher than it is for those with families.
                Belgium’s tax wedge remains the biggest, at 55.8%; that is more than double the
                figure in Mexico and New Zealand—and eight times that in Chile."  economist.com/

     G. Effect Rates

       H.   Average Tax Rate from Wiki its taxes paid/ taxable income

    H. The-global-cost-of-tax-avoidance

        where-shadow-economies-are-well-established/

Tax Rates Have Gone Down.

Some Want Taxes the Wealthy.

Some Sat Tax Where the Money Is!

 The Math Problem That Could Sink
 the Bernie/AOC Agenda

 

 

See insufficient funding

 

 

 

Very-Rich Top 1% of Income
 Going Up Their Taxes Down

 

Payroll Taxes are Very Regressive

 

One important point is people with low earnings die early then the wealthy
so regressive payroll taxes hits then severely.  mother jones.com

 

 

 

 

 

 

 

 

 

the myth-that-the-estate-tax-threatens-small-farms

 

 

 

 

 

 

VI. Federal Revenues and Expenditures
        A. Reported by IRS in form 1040 after the Tax Rates Schedules.
       B. Income