Political Science 2211E Lecture Notes - Flat Tax, Progressive Tax, Tax Bracket
20 Mar 2014
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Document Summary
Today"s topics: key types of taxes, key types of government spending. Reasons for taxation: raise revenue for government spending, affect the macro-economy through aggregate demand, can be used to affect demand, change incentives at the micro level, i. e. carbon tax, affect behaviour (e. g. tax cigarettes, tax junk food, etc. ) The more money you make, the higher a percentage of your income you pay in taxes. E. g. income of ,000 pays 40% = ,000. ,800: pays 15. 5 pays 22% pays 26% pays 29% Your taxable income may not be near ,000. Business trips (charge on company, deduct from individual) Everyone pays the same absolute amount of money regardless of income. Those who make less money are paying a higher percentage of their income in taxes. Used when countries move away progressive income tax system and move towards user fees. Everyone pays the same percentage of their income in taxes. E. g. rick perry advocated for a flat tax of 20%
