Beyond the Sound Bites (after the Quiz if time):
The Chapter 8 Section 2 Quiz is today.
Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.
If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.
Be sure your name is on both the Scantron and the Quiz.
If your name is not on the Quiz it will not be returned.
Matthews Says Japan Will Sell Some U.S. Treasury Assets
March 15 (Bloomberg) -- Shawn Matthews, chief executive officer of Cantor Fitzgerald & Co., discusses the outlook for Federal Reserve monetary policy ahead of today's Federal Open Market Committee meeting and the likelihood the Bank of Japan may sell U.S. Treasuries to help fund recovery from last week's earthquake and tsunami. Matthews, speaking with Suzanne O'Halloran on Bloomberg Television's "Fast Forward," also discusses Cantor Fitzgerald's expansion strategy. (Source: Bloomberg)
Chapter 7 Section 3 Quiz Make-up is today.
The Chapter 7 Test Make-up is available.
The Chapter 7 Section 1 Quiz Make-up is today.
The Chapter 7 Section 2 Make-up Quiz is today.
The Chapter 6 Test Make-up is available.
The Ch. 6 Sec. 3 Quiz Make-up is today.
The Ch. 6 Sec. 2 Quiz Make-up is today.
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Chapter 8 - The American Labor Force
Section 3: Employment Trends and Issues
The Minimum Wage
In-class assignment: answer the questions about the Minimum Wage.
What does Panel A show?
What does Panel B show?
What does Panel C show?
In Panel A does the minimum wage appear to rise?
How does Panel B modify this view?
In what year did the dollar have the most purchasing power?
In 1968, what was the difference between the minimum wage and the average manufacturing wage?
Figure 8.9 The Minimum Wage, p. 220
Business Week News clip
Twilight of the UAW
Chapter 8, Section 3 - Review
In-class assignment: with a partner, fill in the graphic organizer.
List three ways firms renegotiate union contracts.
Off shoring American Jobs to India
Chapter 9 Sources of Government Revenue
Student Web Activity
"Understanding Individual Income Taxes"
As you have already learned, the individual income tax is a tax on people's earnings. The tax laws should be written so that both the taxpayer and the tax collector can understand them. This task is not always easy, but people seem more willing to accept the necessity for taxes when they understand them. The purpose of this activity is to examine the taxes that are taken from your income.
Destination Title: Internal Revenue Service
Note: Clicking on the link above will launch a new browser window.
Need help using your browser for this activity? Click here for tips.
Read the article What is Taxed and Why. Print a copy of the page or read the information and answer the following questions. Answer the questions below.
Scroll down to the bottom of the page and select information for one of the jobs listed.
Print a copy of the page or read the information on screen and answer the following questions.
1. Who benefits from withholding taxes? How?
2. What is tax liability?
3. What is the difference between vertical and horizontal equity?
4. What is a tax deduction? Give examples.
5. Create a list of tax deductions and tax credits that your family may use on your next tax form.
Section 1 The Economics of Taxation
Taxes and other governmental revenues influence the economy by affecting resource allocation, consumer behavior, and the nation’s productivity and growth. The three criteria used to determine if a tax is effective are equity, simplicity, and efficiency. Furthermore, the benefit principle of taxation and the ability-to-pay principle of taxation are used to help decide the group or groups that should bear the burden of the tax. Finally, taxes can be proportional, progressive, and regressive, depending on the way the average tax per dollar changes as taxable income changes.
incidence of a tax
individual income tax
benefit principle of taxation
ability-to-pay principle of taxation
Regressive, Flat, and Progressive Tax Chart
average tax rate
marginal tax rate
In-class assignment: with a partner, complete the graphic organizer by listing the criteria for taxes to be effective. Then define each of the criteria in your own words.
People in the New
Teenage Tax Preparers
Economic Impact of Taxes
Shifting the Incidence of a Tax, p. 231
With a partner, answer the questions.
What does Panel A show?
What does Panel B show?
What is the difference of absorbing a price increase between an elastic, and an inelastic demand?
Criteria for Effective Taxes
Two Principles of Taxation
Three Types of Taxes
Chapter 9 Section 1 Review
In-class assignment: with a partner, use the graphic organizer to describe the economic impact of taxes.
Profiles in Economics
Monica Garcia Pleiman
Section 2 Federal, State, and Local Revenue Systems
There are four main sources of federal government revenues. The first is the individual income tax, a progressive tax administered through a payroll withholding system. The second largest component is FICA, which is levied on employers and employees equally to pay for Social Security and Medicare. The third is borrowing by the federal government. The corporate income tax is the fourth largest source. The excise tax—a tax on the manufacture or sale of selected items such as gasoline and liquor—is the fifth-largest source of federal government revenue. Other sources of federal revenue include estate taxes, gift taxes, customs duties, and user fees. State governments receive revenues in the form of sales taxes, intergovernmental revenues, individual income taxes, and employee retirement contributions. Local governments receive funds from state and federal governments, property taxes, utility and liquor stores, sales taxes, and other sources.
Internal Revenue Service
payroll withholding system
corporate income tax
In-class assignment: with a partner, complete the graphic organizer to identify and describe the revenue sources for federal, state, and local governments.
Issues in the News
Federal Government Revenue Sources
State Government Revenue Sources
State and Local Government Revenue Sources, p. 242
Local Government Revenue Sources
Dreaded Tax Returns
Chapter 9 Section 2 Review
In-class assignment: with a partner, use a graphic organizer to list the federal government's major revenue sources.
Section 3 Current Tax Issues and Reforms
Major tax revision bills have been passed since 1980. The first reduced the progressiveness of the individual income tax and the second made it more proportional. The third, passed in 1993, made it more progressive again. The fourth, passed in 1997, provided wealthy individuals with significant tax relief for long-term investments, and provided modest tax relief for child and educational expenses. The fifth in 2001 focused on reducing the top four marginal tax brackets by significant percentages by 2006. Due to slow economic growth in 2002, the 2001 tax reform was accelerated.
In-class assignment: with a partner, complete a graphic organizer by listing the advantages and disadvantages of the flat tax. Include a definition of flat tax in your own words.
Business Week News Clip
Europe Circles the Flat Tax
Sec. 3 Review
In-class assignment: with a partner, use a graphic organizer to list the advantages and disadvantages of the value-added tax.
Chapter 9 Resources
Chapter 9: Sources of Government Revenue
Multiple Choice Quiz
Ch. 9 Crossword Puzzle
Chapter 9 Flashcards
Test Prep resources
Chapter 8 Crossword Puzzle
Deadline for Action: Labor Unions & Corporate Influence on the U.S. Congress (1/3) (1946), 10:08
John Llewellyn Lewis (1880--1969) was the autocratic president of the United Mine Workers of America (UMW) from 1920 to 1960, and the driving force behind the founding of the Congress of Industrial Organizations (CIO). Using UMW organizers the new CIO established the United Steel Workers of America (USWA) and organized millions of other industrial workers in the 1930s. A powerful speaker and strategist, Lewis did not hesitate to shut down coal production—the nation's main energy and heating source—to achieve his goals.
Lewis threw his support behind Franklin D. Roosevelt (FDR) at the outset of the New Deal. After the passage of the Wagner Act in 1935, Lewis traded on the tremendous appeal that Roosevelt had with workers in those days, sending organizers into the coal fields to tell workers that "The President wants you to join the Union." His UMW was one of FDR's main financial supporters in 1936, contributing over $500,000.
Lewis expanded his base by organizing the so-called "captive mines," those held by the steel producers such as U.S. Steel. That required in turn organizing the steel industry, which had defeated union organizing drives in 1892 and 1919 and which had resisted all organizing efforts since then fiercely. The task of organizing steelworkers, on the other hand, put Lewis at odds with the AFL, which looked down on both industrial workers and the industrial unions that represented all workers in a particular industry, rather than just those in a particular skilled trade or craft.
Lewis was the first president of the Committee of Industrial Organizations. Lewis, in fact, was the CIO: his UMWA provided the great bulk of the financial resources that the CIO poured into organizing drives by the United Automobile Workers (UAW), the USWA, the Textile Workers Union and other newly formed or struggling unions. Lewis hired back many of the people he had exiled from the UMWA in the 1920s to lead the CIO and placed his protégé Philip Murray at the head of the Steel Workers Organizing Committee. Lewis played the leading role in the negotiations that led to the successful conclusion of the Flint sit-down strike conducted by the UAW in 1936-1937 and in the Chrysler sit-down strike that followed.
The CIO's actual membership (as opposed to publicity figures) was 2,850,000 for February 1942. This included 537,000 members of the UAW, just under 500,000 Steel Workers, almost 300,000 members of the Amalgamated Clothing Workers, about 180,000 Electrical Workers, and about 100,000 Rubber Workers. The CIO also included 550,000 members of the United Mine Workers, which did not formally withdraw from the CIO until later in the year. The remaining membership of 700,000 was scattered among thirty-odd smaller unions. (Galenson, p. 585)
The war mobilization dramatically expanded union membership, from 8.7 million in 1940 to over 14.3 million in 1945, about 36% of the work force. For the first time large numbers of women factory workers were enrolled. Both the AFL and CIO supported Roosevelt in 1940 and 1944, with 75% or more of their votes, millions of dollars, and tens of thousands of precinct workers. However, Lewis opposed Roosevelt on foreign policy grounds in 1940. He took the Mine Workers out of the CIO and rejoined the AFL. All labor unions strongly supported the war effort after June 1941 (when Germany invaded the Soviet Union). Left-wing activists crushed wildcat strikes. Nonetheless, Lewis realized that he had enormous leverage. In 1943, the middle of the war, when the rest of labor was observing a policy against strikes, Lewis led the miners out on a twelve-day strike for higher wages; the depth of public dismay—even hatred—of Lewis was palpable. In November 1943 the Fortune poll asked, "Are there any prominent individuals in this country who you feel might be harmful to the future of the country unless they are curbed?" 36% spontaneously named Lewis. (Next came 3% who named Roosevelt.) As a result the Conservative coalition in Congress was able to pass anti-union legislation, leading to the Taft-Hartley Act of 1947.
American Free Enterprise System: Your Town - A Story of America (1940), 10:57
Email (or hand in hard copy) to email@example.com.
1. p. 224-225, #35-37
1. p. 225, #38-40
1. p. 231, Reading Check