Examining Your Paycheck
How can a worker earn some of their money back that they lost from taxes?
Tax returns!
What is the Investment Tax Credit?
Reduction in business taxes that are related to investments in new equipment.
What kind of tax is the FLAT TAX?
The FLAT TAX is a proportional tax
What 3 types of taxes are deducted directly from your paycheck?
Federal, State, and Local Taxes
What is the overall trend of tax reforms?
Tax Reforms tend to reduce taxes.
What is the main benefit of the FLAT TAX?
The FLAT TAX makes filing taxes far more simple
What is the stub called that's attached to your paycheck summarizing your income, tax withholdings, and other deductions?
Payroll withholding statement
Why have Tax Reforms occurred in more recent years?
The change in political parties in power.
Why do many conservative favor the flat tax?
They see it as a fair tax because it doesn't "punish" the rich.
What dates are you able to file taxes through?
January 1st through April 15th
The Government was spending more than revenues. The Government also had to borrow more.
Why is the VALUE ADDED TAX deemed a regressive tax?
The value added onto goods matters less the more money the customer has.
- Insurance Payments
- Retirement Contributions
- Social Security
- Medicare
In 2001, President Bush introduced a 10-year tax cut. The main feature of the 2001 tax reform was to reduce the top four marginal tax brackets. To what percents did the tax cut reduce the top four marginal tax brackets by 2006?
25, 28, 33, and 35 percent.
Why does the state of Minnesota not have a sales tax on many grocery items? (Hint: Think VAT)
Because VAT hits poorer people harder with lower income, it makes sense to make food tax-exempt so they can afford it.