Personal Finance – 12/13/2016

I.  Bellwork:

A.  Tax holidays Link

1) In what month do most states offer Sales Tax Holidays?

2) According to the lists, What 4 items are often most  included in the tax holidays?

II.  Objective:

• Given various scenarios distinguish between progressive, regressive, and proportional taxes
• Identify and classify taxes as progressive, regressive, and proportional according to the methods implemented to generate revenue.
• Analyze and discuss the merits of various methods in which governments generate revenue on consumption, income and wealth.

III.  Discussion

• Michigan Excise Taxes
• States with Tax Holidays

Activity 1: Progressive Taxes and You  Show what percentage of each person’s income would go towards tax in a progressive system by completing pie graphs.

Activity 1: Regressive Taxes and You   Show how a $2,000 tax affects the incomes of five citizens.

Activity 1: Proportional Taxes and You Find out how income is affected in a proportional tax system

IV.  Classwork

A.  progressive regressive and proportional

B.  P. 136 Definitions (8)

C.  Questions

1. What is the largest source of government income?
2. Explain the ability-to-pay principle.
3. Identify the 3 types of taxes.
4. Provide an example for each type of tax.
5. What are the main functions of the IRS?
6. Who has the power to levy taxes?
7. What are the penalties associated with failure to pay income taxes?

D.  Tax Review on iLearn

Personal Finance F2016