A basic description on how taxes work and their effect.

3. The Income Tax was created by the 16 th Amendment to the Constitution in 1913 for the purpose of raising $$$ for the government. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

4. Types of Taxes Federal Income Tax State Income Tax Medicare Social Security Sales Tax Property Tax Estate Tax Gift Tax Customs and Duties Tax Excise Tax Vehicle Taxes User Fees

5. Burden Why should I care?

8. The Tax Effect Increased costs to the consumer

9. Economic Base Taxes

10. Economic Base New Taxes

11. Economic Base New Taxes Reduced Disposable $$$

12. Economic Base New Taxes Reduced Disposable $$$

13. What are our tax rates?

14. Work-for-All had the following illustration combining the Armey Curve with the Laffer Curve. It indicates that if a country wants to maximize the growth of wealth, the optimum tax rate is 30%; if the country wants to maximize revenue, the optimum tax rate is 45%.

15. Tax Rates Over Time

16. Changing Spending Pattern

21. What is a fair tax rate???

23. Who Doesn’t Pay Taxes? A Lot of People

25. How Has Our Spending Changed?

26. In short, reductions in top tax rates under Presidents Kennedy and Reagan, and reductions in capital gains tax rates under Presidents Clinton and George W. Bush, not only "paid for themselves" but also provided enough extra revenue to finance negative income taxes for the bottom 40% and record-low income taxes at middle incomes.

31. Conclusion – Reducing the amount of taxes can increase the cash flow to the treasury. Balancing the expenditures to match the cash inflow makes a healthier economy.

33. “ I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” -- Winston Churchill "You cannot help the poor by destroying the rich. You cannot strengthen the weak by weakening the strong. You cannot bring about prosperity by discouraging thrift. You cannot lift the wage earner up by pulling the wage payer down. You cannot further the brotherhood of man by inciting class hatred. You cannot build character and courage by taking away people's initiative and independence. You cannot help people permanently by doing for them, what they could and should do for themselves.“ --Abraham Lincoln