Chapter 14_Student Notes 2017.doc

Chapter 14 – Section 1 & 2 1. What is the difference between a tax and revenue? 2. What is a progressive tax system? 3. What is proportional tax system? 4. What is a regressive tax system? 5. Which tax system has the US adopted? 6. What is an income tax? 7. What is a...

Chapter 14 – Section 1 & 2 1. What is the difference between a tax and revenue? 2. What is a progressive tax system? 3. What is proportional tax system? 4. What is a regressive tax system? 5. Which tax system has the US adopted? 6. What is an income tax? 7. What is a property tax? 8. What is the incidence of tax? 9. What is an excise tax? 10. What does FICA stand for AND what programs does it fund? 11. Who does Social Security taxes pay for? 12. Who does Medicare primarily pay for? 13. What is a tariff AND what is its main purpose? 14. What is the main purpose of “sin” taxes?  Federal Revenue Excel Project 1. Go to my website and download the excel spreadsheet to your personal drive. 2. Using the data below, fill in the spreadsheet, create a pie chart of Federal Revenue, and answer the questions. 3. Data Tax Amount in billions Percentage Income Tax 915 Social Security 891 Corporate Tax 138 Other 99 Excise Tax 62 Total: 2105 4. Follow these steps to create a pie chart a. Highlight cells A2 thru B6 b. Click on the “insert” menu c. Click on “chart” d. Click on “pie” and select a pie chart style e. Click on the pie chart f. Click “quick layout” g. Click “layout 2” h. Click “Chart title” textbox and type “Federal Revenue – 2,105,000,000,000” i. You can select the pie chart and place it where you’d like it 5. After you created the pie chart, you need to calculate the percentage of each tax of the total federal revenue amount. a. Using a calculator, type in the tax amount of each category and divide it by 2,105,000,000,000 b. Multiply that number by 100 to get the percentage 6. Print out your spreadsheet. It should include tax name, amount in billions, percentage of federal revenue total, and pie chart. 7. According to your pie chart, what two categories of taxes are the largest supplies of revenue for the federal government?  Chapter 14 – Section 4 – State and Local Taxes Vocabulary 1. Operating Budget: 2. Capital Budget: 3. Balanced Budget: Questions 4. What are 3 examples of expenses that are included in a state’s operating budget? 5. What is an example of an expense that is included in a state’s capital budget? 6. How do the majority of states pay for their capital budget? 7. According to Figure 14.5 in the textbook, what are the 5 largest categories of state revenue? List them and give their percentages. 8. According to Figure 14.5 in the textbook, what are the 5 largest categories of state spending? List them and give their percentages. 9. Besides intergovernmental revenue, what is the next major source of revenue for local governments? 10. What is the number one expense for local governments?