POLI 101 - nov 27 policy

POLI 101 - nov 27 policy - Tax Two Reasonable questions 1....

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Tax Two Reasonable questions 1. How will this tax decision affect the overall economy? 2. Is this tax decision fair? Tax Policy 1. Consumption versus income a. Should the use of money or the acquisition of money be taxed? 2. Vertical (progressive, flat, and regressive) a. What is the fairest system? 3. Horizontal (loopholes and government incentives) a. To a large extent this was the focus of Gucci gulch 4. Estate or death taxes a. Should the accumulated savings of a person be taxed when that person dies? What did the heirs do to deserve this income? Where does the government get its money? 1. Income taxes – 48.4% (income tax is a progressive tax) 2. Social insurance and retirement receipts – 36.1% (slightly regressive tax) 3. Corporate income taxes- 13.4% 4. Excise taxes – 2.7% 5. Other taxes -0.9% Where does the money go? 1. Defense – 20.7% 2. Social Security – 21.0% 3. Medicare – 13.5% (Baby boom generation is now aging and needing more medicare) 4. Health – 9.7% 5. Income Security – 13.3%
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This note was uploaded on 02/23/2012 for the course POLI 101 taught by Professor Carney during the Fall '08 term at UNC.

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POLI 101 - nov 27 policy - Tax Two Reasonable questions 1....

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