Financing the Government

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Financing the Government

• Sources of Revenue

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Sources of government income

• Taxes
• The main source of revenue
• Fee and Licenses
• Used to off set the cost of programs
• Fines
• Used to curb actions and pay for programs

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Types of Taxes

• Taxes based on your income
• Placed on individuals and businesses
• The percentage you pay is based on your amount
  earned
• The more you make the higher percentage you pay
• The lower your income the lower percentage you
  pay

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Type of Taxes Income Tax

• Paid Through withholding
• Employers hold back money from each paycheck to
  send to the government
• The amount held back is base on a W-4 form
• Individuals must fill out a personal tax form by
  April 15th each year to report income
• The tax return calculates the amount of tax owed
  or refunded

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Types of Taxes Social Security

• Withheld through your paycheck
• A percentage is deducted up to a set limit
• Employer is required to match the employees
  deduction
• Contributors receive benefits upon qualification

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Types of Taxes Property Tax

• Based on the value of the land and building
  attached
• Kentucky taxes personal property cars, boats and
  other types
• The more the value the more taxes you pay

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Types of Taxes Sales Tax

• Sales tax is a tax paid on goods and services
• Collect by the seller at the time of the sale
• Kentucky has a 6 state sales tax
• Excise Tax
• Know as a users tax
• Used to reduce consumption
• Kentucky does not tax food or medicine

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Types of Taxes Death

• Estate Tax