Tax: Taxes are what we pay for civilized society.

(Tax, Surcharge, Fee, Charge, Tariff) Flat everybody pay the same
(Graduated tax, Progressive tax) change for one to one, more money more tax
1- Know what taxes pay for (public and services)
Financial Aid, State and Local Police, National Defense, Social Services,
Health Care for Elderly and Public Education.
2- Know the difference between tax avoidance and tax evasion. Which one is illegal?

Tax Evasion: Failure to pay legally due taxes (ILLEGAL)

Tax Avoidance: legal means of decreasing your tax bill (

3- Know how to read a pie chart of where taxes come from and what taxes pay for?

4- Know what the IRS is:

Internal Revenue Service

5- Different types of taxes - regressive, progressive, proportional, direct and indirect.

6- What is W-2 ( and finding information on the W-2)

Annually statement of pay taxes/ complete your tax form / if you are working

7- What is a W-4 (and finding information on the W-4)

When I start working - take money from my pay

10- Know what the four maxims of taxes

Entity variable

Time period variable

Jurisdiction variable

Character variable

11- Net present value

12- Steps of (Taxes and cash flow)
Time 0
BTCF

Year1

Year 2

Year 3

(3,000)

4,000

4,000

4,000

TAXABLE

3,000

2,500

3,500

TAX

(900)

(750)

(1,050)

ATCF

(3,000)

3,100

3,250

2,950

PV

(3,000)

2,818

2,686

2,216

NPV

4,720

13- Know the difference between a public and a private market transaction
Private market
Both parties can customize the transaction to minimize the aggregate
tax cost.
Tax savings can be shared between the parties
Examples:
Executive and employer
Merger target and acquirer

Public market
The parties do not engage in direct negotiation
Tax planning is one-sided
Example: Your first job