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By: Ayded Sanchez 2 block 2-25-13

WHERE DO YOUR TAXES GO?

How does the government have the power to tax us?
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Article I, Section. 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States; Summary: The government has the power to tax us because congress can only exercise those powers given in the constitution. The most important one is article 1 section 8 in the 16 amendment because in that section it tells us that some powers of the congress of the original constitution have been interpreted. Basically they take our money and barrow it to pay the debts and provided for the common defence and general welfare of the United States and then when they are done paying their payments they give our money back in the tax that’s why every year we report the taxes.

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What are progressive, payroll, regressive, income and estate taxes? What are two nontax methods?

Progressive Taxes: that is, the higher one’s income, the higher the tax. The tax is levied o the earnings of both individuals and corporations. Example: In 2012, the first $8,700 of income for single people is taxed at a rate of 10 percent. Income between $8,701 and $35,350 is taxed at 15 percent. The rate continues to increase as income increases to a maximum tax rate of 35 percent for income over $388,350. Own words: if you have a income of 8,000 or less you pay only 10 percent and if you pay more than 35,000 you pay 15 percent if the number of your income grows the more percentage you going to pay. Payroll Taxes: is OASDI and Medicare are supported by taxes employees, and on self- employed persons. Example: Jim Robert's gross earnings were $2,884.62 for the week ended January 23, 2009. The company recorded the following employer payroll tax liabilities: Own words: if you get a earning and is a big number you end up with a low number because you end up paying everything. Regressive Taxes: they are taxes levied at a flat rate, without regard to a taxpayer’s income or ability to pay. Example: if a person has $10 of income and must pay $1 of tax on a package of cigarettes, this represents 10% of the person's income. However, if the person has $20 of income, this $1 tax only represents 5% of that person's income. Own words: this is saying that if your income tax is whatever amount that’s going to represent your income. Income Taxes: is the largest source of federal revenue. Example: you have an income from a pension or savings. Not all types of income are taxable and it will seldom be the case that all of your income is taxed. There is no minimum age at which a person becomes liable to pay income tax. What matters is the amount of your taxable income. If this is below a certain level, no tax is payable. Own words: is saying that if you have money save doesn’t mater that not all tax are payable and what counts is the amount of your tax income. Estate Taxes: is a levy imposed on the assets (the estate) of one who dies. Example: Mr. Bill owns 520 million shares of M Corporation personally, which is worth about $25 per share, and owns no real estate. His estate is therefore valued at about $13 billion. Own words: this is saying that is someone has 899 million they going to have to share and end up with less money and depending the percent of that amount.

What is the difference between a surplus and a deficit? Which one are adding to now, and what are the numbers?

A surplus is an amount of something left over when requirements have been met; an excess of production or supply over demand. Own words: money left of the end of the month.

A deficit is the amount by which something, esp. a sum of money, is too small. An excess of expenditure or liabilities over income or assets in a given period. Own words: running out of money and borrowing money.
Today we are in the deficit because we have borrowed money, and we are adding to the deficit, is a big number is going to be in the 36.6 trillions. It’s important for us to have a balanced budget is to have money save and we can stop borrowing money from other country and we can stop owing other country.

Summary:

Why is it important for our country to have a balanced budget?

 It’s important for us to have a balanced

budget is to have money save and we can stop borrowing money from other country and we can stop owing other country.

What are entitlements and how do they effect government spending?

An entitlement program can be defined as a governmental mechanism where public funds are given to people because they meet some kind of requirement. One commonly known American example of an entitlement program would be the federal food stamp program, which allows people without sufficient funds to buy food. Another well-known entitlement program is Medicare, although only certain parts of that program actually qualify as entitlements it could be bad because it affects the economy annually and its uncontrollable. That's why there needed for and they are a big need to be completed and pay for. If the government keeps on having these since they are important social programs they are going to have to pay for them annually and take care of them otherwise the money will keep going and they wont have enough to spent on them.

Which program did you study?
My entitlement program is WIC. http://www.fns.usda.gov/about-fns

USDA’s Food and Nutrition Service works to end hunger and obesity through the administration of 15 federal nutrition assistance programs including WIC, Supplemental Nutrition Assistance Program (SNAP), and school meals. In partnership with State and Tribal governments, our programs serve one in four Americans during the course of a year. Working with our public, private and nonprofit partners, our mission is to increase food security and reduce hunger by providing children and low-income people access to food, a healthful diet and nutrition education in a way that supports American agriculture and inspires public confidence. No American should have to go hungry.

Who is eligible for this program? What specific benefits do people in this program receive?

The WIC Program is designed to serve certain categories of women, infants, and children. Therefore, the following individuals are considered categorically eligible for WIC: Women -- pregnant (during pregnancy and up to 6 weeks after the birth of an infant or the end of the pregnancy) -- postpartum (up to six months after the birth of the infant or the end of the pregnancy) -breastfeeding (up to the infant's first birthday) Infants (up to the infant's first birthday) Children (up to the child's fifth birthday)
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WIC reduces fetal deaths and infant mortality. WIC reduces low birth weight rates and increases the duration of pregnancy. WIC improves the growth of nutritionally at-risk infants and children.


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WIC decreases the incidence of iron deficiency anemia in children.
WIC improves the dietary intake of pregnant and postpartum women and improves weight gain in pregnant women. Pregnant women participating in WIC receive prenatal care earlier. Children enrolled in WIC are more likely to have a regular source of medical care and have more up to date immunizations.


WIC helps get children ready to start school: children who receive WIC benefits demonstrate improved intellectual development.
WIC significantly improves children’s diets.

How much money is spent on this program each year?

PROGRAM COSTS Fiscal Year Total Participation* (Thousands) 2011 2012 8,961 8,908 Food NSA

Average Monthly Food Cost Per Person
(Dollars) 46.67 45.03

(Millions of Dollars) 5,018.2 4,813.4 1,961.7 1,931.8 7,169.0 6,853.0

Your argument FOR a balanced budget: Your argument AGAINST a balanced budget:
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My arguments for having a balance budget is to have money for our own and not ask other country for borrow money we can have. My argument against a balance budget is that we have to tray to live it like that to have a better live and be dependent of our own because we have done it and we can still do it.