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TAXES Civic Duties and Taxes TAXES Civic Duties and Taxes

TAXES Civic Duties and Taxes - PowerPoint Presentation

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TAXES Civic Duties and Taxes - PPT Presentation

Taxes are what we pay for a civilized society Justice Oliver Wendell Holmes People want just or fair taxes more than they want lower taxes They want to know that every man is paying his proportionate share according to his wealth ID: 809188

pay tax income taxes tax pay taxes income people services goods paying government federal society provide benefits return good

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Slide1

TAXES

Slide2

Civic Duties and Taxes

Taxes are what we pay for a civilized society.

” Justice Oliver Wendell Holmes

“People want just (or fair) taxes more than they want lower taxes. They want to know that every man is paying his proportionate share according to his wealth.” Will Rogers

“Collecting more taxes than absolutely necessary is legalized robbery.” President Calvin Coolidge

Ask not what your country can do for you, but what you can do for your country.

President John F. Kennedy

Slide3

Not a new concept…

Paying taxes to the government is almost as old as time.

Early money collected supported the empires of kings and provided revenue for military efforts.

Many will complain about taxes…..but most still enjoy the benefits paid by the government.

Slide4

Local, state, and federal governments use tax dollars to provide many goods and services such as public schools, roads and highways, national defense, safe drinking water, firemen, police, etc. Some of these programs are only paid for at one level of government while others are partnerships between two or more levels.

Slide5

Regardless of who provides the service, taxpayers pay for it. The idea is for taxes policy in the US to be fair.

The

idea of a “fair tax” is based on the notion that no one segment of society should be treated differently in the eyes of the law.

Problem – what seems fair to one group may seem unfair to another group

Slide6

Tax Theories

Ability to pay theory

– says the people who can afford to pay taxes should pay more than those with a limited ability to pay

Slide7

Benefits received theory

– based on the premise that the government should tax people who receive the goods and services provided by those taxes.

Only

people using the programs would pay the taxes. Example – people who drive on toll roads in Oklahoma pay fees for those roads. If you do not want to pay fee, don’t drive on it. Problem – people with limited income may benefit most from programs such as unemployment or food stamps. If these people are in need of public assistance, how can they pay more?

Slide8

Progressive or Regressive

Progressive

– a tax that takes a larger percentage of income from people in higher-income groups than from people in lower-income ones; federal income tax

As income increases, tax rates increase

Slide9

Regressive

– a tax that takes a larger percentage of income from people in lower-income groups than from higher-income ones; sales tax – tax paid on goods and services at the point of purchase.

While

everyone pays the same amount, lower income households spend more of their earnings to purchase goods and services than people with higher incomes. Therefore, it is a bigger burden on lower income households.

Slide10

Public Goods and Services – Because the idea of fairness is subjective, it becomes a hot political topic at both the state and federal level.

Free rider – The free rider problem happens when people benefit from using goods and services without paying for them. If we do not have to pay, there is little incentive to control these goods or services. Those who are in fact paying will need to pay more to meet the demand.

Slide11

Governments provide goods and services for the good of society.

Deciding

what the government should provide is like other decisions – governments should provide goods and services as long as the benefits of providing them is greater than the costs associated with them.

Measuring the costs and benefits is difficult – not all individuals have the same benefits and not all individuals have the same costs.

Slide12

Voluntary Compliance

Ethics – a set of principals or beliefs that govern an individual’s actions

Morals – a system of values and principals of conduct that promotes good customs and virtues while condemning bad customs and vices

Slide13

Standard of Living – the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a country

Quality of Life – the overall enjoyment of life and sense of well-being

Voluntary Compliance – a system that relies on individual citizens to report their income freely and voluntarily, calculate their tax liability correctly, and file a tax return on time, according to rules established by the Internal Revenue Service

Slide14

Duty? Most people believe that it is their civic duty to pay their taxes. However, some citizens look for ways to cheat the government by using false deductions or failing to report their income. Regardless of their reasons, paying taxes is mandatory. If you do not comply with the law, you will probably end up paying stiff penalties.

Slide15

If you do not report the correct amount of income (called underreporting) or if you do not file a tax return, you can face criminal prosecution.

The

Internal Revenue Service (IRS), which is a division of the US Treasury, is charged with maintaining the confidence in the federal tax system.

To insure proper filing, the IRS has the right to audit a person’s tax return. Make sure it file on time – this makes an audit less likely. Keep good records and always be honest!

Slide16

Who reports?

Everyone who receives a paycheck is required to submit a tax return to the IRS by April 15

th

. Employees receive a W-2 which includes the information you need to complete your tax return. In most states, you are required to pay local and state personal income tax in additional to federal. Oklahoma residents pay state and federal.

Slide17

Ethics/Moral Issues

Failing to pay taxes is a high risk. One incentive for paying your personal income taxes or any other required tax is knowing you have done nothing illegal if you are questioned by the government.

Slide18

Paying taxes is part of your shared responsibility to society.

Good

citizenship is at the core of our society; this means doing your part for the common good. Your tax dollars provide public goods and services designed to increase our country’s standard of living and quality of life.

Standard of living relates to the wealth within the country while the quality of life reflects what makes people happy.

Slide19

Services supported – clean drinking water and safe roads, support for the elderly, military personnel to defend our nation,

etc

Even if an error is an honest mistake, you may pay large fines. If the IRS determines that you willfully committed fraud, you will be tried in court. If found guilty, you will go to

jail for tax fraud.