南昌大学：《会计学》ACCA课件（英文版）Chapter 12 The Design of the Tax System

The design of the Tax system CK hapter 12

The Design of the Tax System Chapter 12

In this world nothing is certain but death and taxes Benjamin franklin 8∞ Taxes paid in Ben Franklins time accounted for 5 percent of the average Americans Income 1789

“In this world nothing is certain but death and taxes.” . . . Benjamin Franklin 0 20 40 60 80 100 1789 Taxes paid in Ben Franklin’s time accounted for 5 percent of the average American’s income

In this world nothing is certain but death and taxes Benjamin franklin Today, taxes account for up to a third of the average Americans In come 1789 Today

0 20 40 60 80 100 1789 Today Today, taxes account for up to a third of the average American’s income. “In this world nothing is certain but death and taxes.” . . . Benjamin Franklin

Government revenue as a Percentage of gDp Percent of 35 GDP Total government 15 10 5 0 1902 19131922192719321940 1950 19601970 1980 19901998

Government Revenue as a Percentage of GDP

Central government Tax Revenue as a percentage of gdp France 38.8 United Kingdom 33.7 Germany 294 Brazil 197 United States 193 Canada 18.5 Russia 174 Indonesia 14.7 Pakistan 153 Mexico 128 India 10.3

France 38.8 United Kingdom 33.7 Germany 29.4 Brazil 19.7 United States 19.3 Canada 18.5 Russia 17.4 Indonesia 14.7 Pakistan 15.3 Mexico 12.8 India 10.3 Central Government Tax Revenue as a Percentage of GDP

The Federal government The U.S. federal government collects about two-thirds of the taxes in the economy. e The largest source of revenue for the federal government is the individual income tax

The Federal Government • The U.S. federal government collects about two-thirds of the taxes in the economy. • The largest source of revenue for the federal government is the individual income tax

Receipts of the Federal Government: 1999 VS. 2001 Tax(1999) Amount Amount Percent (billions) (per person) of Receipts ndividual income taxes s869 s3,194 48% Social insurance taxes 609 2239 34 Corporate income taxes 182 669 10 lothe er 146 537 8 otal $1,806 6,639 100 Tax(2001) Amount mount Percent (billions) (per person) of Receipts Individual income taxes $994 3,488 50% Social insurance taxes 694 2435 35% Corporate income taxes 151 530 Other 152 533 8 Total s1991$6986100%

Receipts of the Federal Government: 1999 vs. 2001 Tax(1999) Amount (billions) Amount (per person) Percent of Receipts Individual income taxes $869 $3,194 48% Social insurance taxes 609 2,239 34 Corporate income taxes 182 669 10 Other 146 537 8 Total $1,806 $6,639 100% Tax (2001) Amount (billions) Amount (per person) Percent of Receipts Individual income taxes $994 $3,488 50% Social insurance taxes 694 2,435 35% Corporate income taxes 151 530 8% Other 152 533 8% Total $1,991 $6,986 100%

Tax liability o With respect to paying income taxes, an individuals tax liability(how much he/she owes)is based on total income The marginal tax rate is the tax rate applied to each additional dollar of Income Higher-income families pay a larger percentage of their income in taxes

Tax Liability • With respect to paying income taxes, an individual’s tax liability (how much he/she owes) is based on total income. • The marginal tax rate is the tax rate applied to each additional dollar of income. • Higher-income families pay a larger percentage of their income in taxes

Federal Income tax rate 1999s.2001 1999 On Taxable Income The Tax Rate is Upto$25750 150% From$25,750to$62450 28.0 From$62,450to$130250 31.0 From$130,250to$283,150 36.0 Over$283150 39.6 2001 On taxable income The Tax Rate Is Up to $27,050 150% From$27,050to$65550 27.5 From S65550to$136750 30.5 From$136,750tos297350 355 Over$297350 391

Federal Income Tax rate: 1999 vs. 2001 On Taxable Income… The Tax Rate Is . . . Up to $25,750 15.0 % From $25,750 to $62,450 28.0 From $62,450 to $130,250 31.0 From $130,250 to $283,150 36.0 Over $283,150 39.6 On Taxable Income… The Tax Rate Is . . . Up to $27,050 15.0 % From $27,050 to $65,550 27.5 From $65,550 to $136,750 30.5 From $136,750 to $297,350 35.5 Over $297,350 39.1 1999 2001

Federal Government Spending 1999 Amount Amount per Percent of Category (billions) Person Spending Social security $393 $1,445 23% National defense 277 1,018 16 Net interest 243 893 Income security 227 837 13 Medicare 205 754 12 Health 143 526 8 Other 239 879 14 Total $1,727 6350 100%

Federal Government Spending: 1999 Category Amount (billions) Amount per Person Percent of Spending Social security $ 393 $1,445 23% National defense 277 1,018 16 Net interest 243 893 14 Income security 227 837 13 Medicare 205 754 12 Health 143 526 8 Other 239 879 14 Total $1,727 $6,350 100%