ECONOMIC POLICYMAKING

Who controls the Economy today?

The

President

AND

Congress!

The Federal Economy

The President The Congress

1921 Budget & 1921- Congress hands over Accounting Act the reigns to the President

to prepare the budget

CEA- Council of Economic Advisors

(3 members)

OMB- Congressional Budget Office of Management & Budget & Impoundment Act 1974 (over 500 workers)

CBO- Congressional Budget Office

Market vs. Non Market Economies

ADAM SMITHGovernment keep your hands out of

Business!

• ADAM SMITH

LAISSEZ FAIRE

JOHN MAYNARD KEYNES

• We can control the Economy!

• Aggregate Demand can be controlled

through Monetary and Fiscal means.

FISCAL POLICIES

SPENDING

&

TAXING

MONETARY POLICIES

Money Supply

&

Interest Rates

The Federal Reserve

Established 1913

7 Members all appointed by the president

14 yr. Tenure

Federal Chairman BEN BERNANKE

TAXES WE PAY

Property- pays for education, police, and fire protection

Excise- ex: gasoline tax

Personal- tax on your income

Sales Tax- State and Local OH= 6% Geauga County- 6.5%

Cuyahoga County- 7.5%

TAXES WE PAY

Payroll Taxes- Social Security, Medicare etc.

Licenses-

Social Insurance- Social Security

User Fees- turnpike tolls

Ohio’s State Income Taxes• How Ohio State income tax rates are structured The tax table below will show in detail the

Ohio state income tax rates by income tax bracket(s).

• There are 9 income tax brackets for Ohio.

• If your income range is between $0 and $5,000, your tax rate on every dollar of income earned is 0.587%.If your income range is between $5,001 and $10,000, your tax rate on every dollar of income earned is 1.174%.If your income range is between $10,001 and $15,000, your tax rate on every dollar of income earned is 2.348%.If your income range is between $15,001 and $20,000, your tax rate on every dollar of income earned is 2.935%.If your income range is between $20,001 and $40,000, your tax rate on every dollar of income earned is 3.521%.If your income range is between $40,001 and $80,000, your tax rate on every dollar of income earned is 4.109%.If your income range is between $80,001 and $100,000, your tax rate on every dollar of income earned is 4.695%.If your income range is between $100,001 and $200,000, your tax rate on every dollar of income earned is 5.451%.If your income range is $200,001 and over, your tax rate on every dollar of income earned is 5.925%. Income tax brackets data last updated March 3rd, 2009.

2008 Tax Bracketsfor Single Taxpayers

2008 tax rates and brackets

These tables can help you estimate your tax bill

For single taxpayers

If taxable income is at least . . . But not more than . . . Your tax is:

$0 $8,025 10% of the amount over $0

$8,026 $32,550 $802.50 plus 15% of the amount over $8,025

$32,551 $78,850 $4,481.25 plus 25% of the amount over $32,550

$78,851 $164,550 $16,056.25 plus 28% of the amount over $78,850

$164,551 $357,700$40,052.25 plus 33% of the amount over

$164,550

$357,701 No limit$103,791.75 plus 35% of the amount over

$357,700

2008 Tax Brackets for Married Couples

For married couples filing jointly*

If taxable income is at least . . .But not more

than . . .Your tax is:

$0 $16,050 10% of the amount over $0

$16,051 $65,100 $1,605 plus 15% of the amount over $16,050

$65,101 $131,450 $8,962.50 plus 25% of the amount over $65,100

$131,451 $200,300 $25,550 plus 28% of the amount over $131,450

$200,301 $357,700 $44,828 plus 33% of the amount over $200,300

$357,701 No limit $96,770 plus 35% of the amount over $357,700

* Or qualifying widow or widower

2008 Tax Brackets for Heads of Household

For heads of households

If taxable income is more than . . .But not more

than . . .Your tax is:

$0 $11,450 10% of the amount over $0

$11,451 $43,650 $1,145 plus 15% of the amount over $11,450

$43,651 $112,650 $5,975 plus 25% of the amount over $43,650

$112,651 $182,400 $23,225 plus 28% of the amount over $112,650

$182,401 $357,700 $42,755 plus 33% of the amount over $182,400

$357,701 No limit $100,605 plus 35% of the amount over $357,700

STATE TAXES ON INDIVIDUALS

See document in Ch. 18 folder

SEE My Pay Stub--- in ch. 18 folder

• See ch. 18 folder for

Receipts and Outlays 2004