Political Science 2211E Lecture Notes - Flat Tax, Tax Bracket, Gross Domestic Product

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

Today"s topics: key types of taxes, key types of gov"t spending. Change incentives at the micro level: i. e. carbon tax. The more money you make, the higher percentage of your income you pay to taxes. Marginal tax percentage you pay according to your salary is divided in different section (pay 10% on first ,000, 15% on second ,000 and 25% on ,000. What is taxable income: your income minus deduction and write-offs. Everyone pays the same absolute amount of money regardless of income: almost like taxes are a set fee. I. e. everyone pays ,000: for a person making 20k= 25, for person making k+10, for person making k=5% Everyone pays the same percentage of their income in taxes: basically means there is only 1 tax bracket, i. e. everyone pays 10% Is said to make tax code much less complicated. Complications come from deduction not tax brackets. Used to lower income and corporate taxes.