ECON 2305 1st Edition Lecture22Outline of Last Lecture I. Federal Reserve BankingOutline of Current LectureI. Tax System Current LectureProgressive TaxHigher income, higher tax ratePersonal Income Tax & Corporate Income TaxFlat/Proportional Tax11% during Regan’s time (1984)Regressive Higher income, lower tax rateSales Tax & Excise Tax Federal Income TaxProgressiveRisen from 10% to 39.6%Largest source of federal revenue Tool of fiscal policyComplex Social Security TaxAlso called payroll tax FICA of 1935Matching programFlat/RegressiveUp to 6.2% Pay as you go programAlso referred to as the “Ponzi” programSocial Security Issues Baby Boomers (1946-64)Fewer people payingThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Life Expectancy increased 1900-46,48 1935-60,64 1981-70,78
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