Question of the DayQuestion of the Day2/24/142/24/14

List 4 rights you have as a List 4 rights you have as a citizen and then list 4 citizen and then list 4

responsibilities you have.responsibilities you have.

Unit 5 OverviewUnit 5 Overview

Rights and Responsibilities of Rights and Responsibilities of CitizensCitizens

Guiding QuestionsGuiding Questions

1.1. Can students distinguish different types of taxes? Can students distinguish different types of taxes? 2.2. Can students state the purposes and uses of particular Can students state the purposes and uses of particular

types of taxes? types of taxes? 3.3. Can students explain the fairness issue related to Can students explain the fairness issue related to

different types of taxes? different types of taxes? 4.4. Can students distinguish different types of rights? Can students distinguish different types of rights? 5.5. Can students define social injustice and give an Can students define social injustice and give an

example in American society? example in American society? 6.6. Can students define civic responsibility and give an Can students define civic responsibility and give an

example in American society?example in American society?

Unit 5 Activity 1Unit 5 Activity 1

Rights and Responsibilities of Rights and Responsibilities of Citizenship – A Focus on Citizenship – A Focus on

TaxesTaxes

Who are these people?Who are these people?What do they have in common?What do they have in common?

History of TaxesHistory of Taxes

•Cooking Oil, Foreigners, and Slaves Cooking Oil, Foreigners, and Slaves (Ancient Egypt)(Ancient Egypt)

•Sales, Inheritance, Imports, and Sales, Inheritance, Imports, and Exports (Ancient Rome)Exports (Ancient Rome)

•Beards, Beehives, Boots, and Souls Beards, Beehives, Boots, and Souls (Russia, 1702)(Russia, 1702)

•Bachelors (England,1695; Missouri, Bachelors (England,1695; Missouri, 1820)1820)

So how does the government get So how does the government get all this money?all this money?

TAXESTAXES

Revenue: the money the Revenue: the money the government receives.government receives.

Taxes: the fees charged on a Taxes: the fees charged on a product, an activity, or product, an activity, or income. income.

How does the government get How does the government get its money?its money?

The government has many expenses.The government has many expenses.

Governments need a reliable source of Governments need a reliable source of income to carry out their laws and income to carry out their laws and regulations.regulations.

Different types of taxesDifferent types of taxes

Progressive taxProgressive tax—a tax in which people who —a tax in which people who earn more money pay more taxesearn more money pay more taxes

Regressive taxRegressive tax—a tax in which everyone pays —a tax in which everyone pays the same amount no matter how much they the same amount no matter how much they earnearn

Progressive TaxesProgressive TaxesIncome taxIncome tax—a progressive tax on the —a progressive tax on the money an individual or business earns.money an individual or business earns.

– There was no such thing as income tax until There was no such thing as income tax until 1913 when the 161913 when the 16thth Amendment of the Amendment of the Constitution passed Constitution passed

– Seven states have no state income tax: Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Alaska, Florida, Nevada, South Dakota, Texas, Washington Texas, Washington andand Wyoming. Wyoming.

Regressive TaxesRegressive TaxesSalesSales taxtax—a tax placed on the sale of products—a tax placed on the sale of products

Popular because they are so easy to collectPopular because they are so easy to collect

Excise tax—Excise tax—aa sales tax collected on specific sales tax collected on specific products—gasoline, cigarettes, alcoholic products—gasoline, cigarettes, alcoholic beveragesbeverages– Alaska, Delaware, Montana, New HampshireAlaska, Delaware, Montana, New Hampshire, and , and

OregonOregon are the five states that currently do not are the five states that currently do not impose general sales taxes at the state level. impose general sales taxes at the state level.

– However, numerous boroughs and cities in Alaska However, numerous boroughs and cities in Alaska have their own local sales taxes. have their own local sales taxes.

– Furthermore, the other four states impose sales-type Furthermore, the other four states impose sales-type taxes on specific transactions, such as lodging taxes on specific transactions, such as lodging accommodations.accommodations.

Louisiana Sales taxLouisiana Sales taxThe sales tax rate in Louisiana is 4%. The sales tax rate in Louisiana is 4%.

When an item is purchased, the state sales tax When an item is purchased, the state sales tax is combined with the local sales tax in that areais combined with the local sales tax in that area. .

Hammond—9% Hammond—9%

Ponchatoula—9%Ponchatoula—9%

Amite—9.5%Amite—9.5%

Mandeville—9.25% Mandeville—9.25%

Fuel—in Louisiana, there is a 20 cent tax added Fuel—in Louisiana, there is a 20 cent tax added to every gallon of gas or diesel and federal 18.4 to every gallon of gas or diesel and federal 18.4 cents per gallon for a total of 38.4 cents of taxcents per gallon for a total of 38.4 cents of tax

•Covington—8.75%•Folsom—9.25% •Madisonville—8.75%•Baton Rouge—9%

Property TaxProperty Tax

property taxproperty tax—a tax on the value of —a tax on the value of property, especially real estateproperty, especially real estate– but also can be on boats, jewelry, but also can be on boats, jewelry,

automobiles recreational vehicles, and automobiles recreational vehicles, and business inventoriesbusiness inventories

– Property taxes are assessed and collected at Property taxes are assessed and collected at the local level in Louisiana the local level in Louisiana

Property taxes are a primary source of Property taxes are a primary source of revenue for local governmentsrevenue for local governments

Other Types of TaxesOther Types of Taxes

Inheritance tax or estate tax or death Inheritance tax or estate tax or death taxtax—a tax on a deceased person’s —a tax on a deceased person’s property.property. – Collected at the federal level if the estate Collected at the federal level if the estate

worth exceeds $600,000.worth exceeds $600,000.– Collected in Louisiana over $15,000.Collected in Louisiana over $15,000.

Gift taxGift tax—a tax on gifts worth over a —a tax on gifts worth over a certain amountcertain amount– Federal—over $10,000Federal—over $10,000– State—over $12,000State—over $12,000

Other Types of Taxes cont.Other Types of Taxes cont.

Social SecuritySocial Security TaxTax—a tax on wages that —a tax on wages that goes into a federal fund that provides goes into a federal fund that provides financial support for the elderly.financial support for the elderly.

TariffTariff—import tax that protects American —import tax that protects American industries.industries.

Other Types of RevenueOther Types of RevenueLease landLease land to raise money to raise money

FinesFines—traffic regulations, clean air and —traffic regulations, clean air and waterwater

TollsTolls

FeesFees– Hunting, fishing, driving, marrying (state)Hunting, fishing, driving, marrying (state)– Copyrights, passports (federal)Copyrights, passports (federal)

LotteriesLotteries