POLS 207 Lecture Notes - Lecture 6: Permanent University Fund, Payroll Tax, Income Tax
9 Feb 2017
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Document Summary
Never look at rates when dealing with taxes. What people pay is the product of what they pay x the rate. Tax effort (burden) = tax / income. The american people find that we are taxed too much. We pay one of the highest corporate tax rates in the world. However, looking at other countries, they are taxed more but they receive more from the government. Are we really getting taxed too much? . Payroll tax: federal taxes on wages earned. Over 40% of population don"t pay income taxes. It is possible to pay payroll taxes without paying income taxes. Roughly 20% of revenue sources go to federal support. Education is the biggest state/local government expenditure. Kids have to be taken to school, it"s required. Citizens don"t get to choose whether it will be taken out of paycheck. Mortgage holder/ bank will take out money every month to pay for taxes.
