2. TA6 Quiz on Mon, April 18

3. Unit 6 Test on Tues, April 1921 days of Instruction left!!! 13 days until EOCT!!!!

4. TAXATION

5. Georgia Performance Standards SSEMA3 (Social Studies Economics Macro #3) The student will explain how the government uses fiscal policy to promote price stability, full employment, and economic growth. Define fiscal policy. b. Explain the government’s taxing and spending decisions.

6. Characteristics of a “Good” Tax Equity – tax should be fair, impartial, and just

7. Efficiency – taxpayers nor collectors should spend too much time & money on paying/collecting taxes

8. Certainty – clear to the taxpayer when a tax is due, how much money is due, and how the tax should be paid

9. Simplicity - tax laws should be easy to understand Example: Personal Income Tax vs. Sales Tax

10. Who Bears the Tax Burden? Benefit Principle of Taxation – those who benefit from government G/S should pay in proportion to the amount of benefits they receive Example: gasoline tax for upkeep of roads

11. Limitations: those who receive greatest benefits from taxes are the least able to pay taxes for benefits received Example: welfare, subsidized housingbenefits are hard to measure Example: businesses for infrastructure improvements

12. Ability-to-Pay Principle – people should be taxed according to their ability to pay regardless of the benefits they receive Example: personal income tax

14. assumes that people with higher incomes suffer less discomfort paying taxes than those with lower incomes