1.
The three largest items in the federal budget are:
- Social Security
- Medicare & Medicaid
- Military funding
2. Compare U.S. taxes today vs. the 1950s and vs. Europe.
Americans pay lower taxes since countries in Europe have to pay
taxes on universal healthcare, free education, etcetera. Nowadays,
proportions of income spent on taxes have decreased exceedingly
now and are the lowest since the 1950s.
3. What has happened to corporation taxes and payroll taxes as a
percent of the total?
Corporate taxes have dropped from 40% of revenues to 9%. Our
payroll taxes on the other hand have doubled from 15% to 30%.
4. _40%_ percent of large corporations pay zero taxes.
5. A 2003 IRS study says the 400 top earners average _$45
million_/yr and pay an average of _8_% income taxes.
6. Billionaire investor Warren Buffet pays __18_% taxes while his
salaried assistant pays __30_%.
7. Why do low taxes on stocks and bonds favor the rich?
Only the top 10% own 85% of stocks and bonds, and have large
estates to inherit.
8. Give an example of a middle class tax break.
Tax deduction for interest on mortgage payments.
9. What happens to Social Security in 2037 if nothing is done?
Medicare?
20% shortfall on Social Security and a deficit in Medicare in 2029.
10. Briefly explain what is meant by the ‘cap’ on Social Security.
Amount of income rich people pay Social Security tax on.
11. Is Social Security a progressive or regressive tax? How about
the sales tax?
Social security and sales taxes are both regressive.
12. U.S. Corporate CEOs make 350_ times the average worker.
13. In 2005, the average Walmart worker made $_17,000___;
Walmart’s CEO made $__17 million___.
14. The top 1% own as much as the bottom _90_%. The three
richest people have as much as the bottom 50_%.
15. What has happened to the income of the top 1% in recent
decades?
The top 1% have greatly increased in real income compared with
the bottom 90%
16. What is the official poverty level for a family of 4? What percent
live below the official poverty level? What is the real poverty rate?
_76% of black mothers and 71_% of white men work.
The official poverty level for a family of 4 is $30,000/yr. 25% live
below the poverty level.
17. What happened to median family income and poverty after
2001? How much is the median individual income? (50% make
more, 50% make less.)
The median family income of American families has gone down or
stagnated since 2001. The median individual income is only
$57,252 even though the average individual income is $74,755.
18, _40 _% of people say they could not come up with $400 cash if
there were an emergency.
19. List one problem of welfare reform.
- Many people who push off welfare can only get minimum
wage jobs
20. Why were financial rules loosened before 2008? What was the
government’s response to the 2008 crash?
Lobbying by the financial industry. Lowering interest rates and tax
cuts.
21. Briefly describe what Keynesian, Monetarist, Supply-Side and
Austerity programs advocate to stimulate the economy. What are
the problems with Supply Side and Austerity?
A.Keynesian
- Increase in government spending and cutting taxes
across the board.
B.Monetarist
- Lower interest rates and increase money supply.
C.Supply-Side
- Tax cuts for the rich
- Problem: Tax cuts don’t increase investment, only growth
in the economy is at the top, and decrease in government
revenues.
D.Austerity
- Cuts in government spending.
- Problem: Increase in poverty and resulted in a 12% raise
in unemployment.
22. Compare the tax breaks for two different income groups in the
Bush 2006 tax bill.
1.People making $30,000-$40,000 a year gets a $20 tax cut
2.People making more than $1 million a year gets a $42,000 tax
cut
23. Over 40_ percent of Reagan’s, Bush’s and Trump’s tax cuts went
to the top 1%.
24. What did Obama do on unemployment and budget deficits?
What did Biden do on unemployment and deficits? What economic
issue hurt Harris in the 2024 election?
1.Obama decreased the budget deficit by 70% and the
unemployment rate by 50%.
2.Biden decreased unemployment by 33%, (with 15 million jobs
created) and decreased the budget deficit by 42%.
3.Food and housing costs were up
25. Give three yes and three no arguments - Are tax cuts good for
America?
A.Yes
- Payroll tax cut helped everyone but the top 5%
- Can increase investment (really doesn’t)
- Stimulates the economy
B.No
- Only benefits the rich
- Decreases government revenues
- Only results in small economic growth
