DBQ
Document Based Question
Flat Tax vs. Progressive Tax
Economics -2012/2013
Student Name
School
Grade Level 12th Economics Period
Date / Prerequisites must be present to be graded
Teacher Name / Score
Scored using the holistic rubric ______(1-6)
1=FFB 2=FFB 3=APP
4=Meets 5=Exceeds 6=Exceeds
Overview
DBQ Time Line:
■Day 1: Introduction of prompt and grading procedures/Document analysis/Notes/Trigger questions
■Day 2: Research/Share and discuss/Complete research charts
■Day 3: Research/Share and discuss/Complete research charts
■Day 4: Thesis formation/Graphic organizer
■Day 5: Rough draft including all citations/Peer review
■Day 6: Write final draft
DBQ Scoring Guide:
Task / Suggested PointsAnalyzing Documents / /30
Research Charts / /50
Graphic Organizer/Rough Draft / /10
Bibliography / /25
Speaking and Listening / /10
DBQ Final Essay / /100
TOTAL / /225
Speaking and Listening Rubric – Collaborative Conversations, 9-12
Collaborative Conversations / 4 Exceeds / 3 Meets / 2 Approaches / 1 Does Approach StandardPreparation / · Seeks outside sources to gain insight
· Readily shares resources with others
· When appropriate makes strategic use of digital media to enhance understanding of findings / Preparation is evident, includes but not limited to:
· Identifies/highlights key words and phrases
· Has notes of main ideas
· Includes outside sources
· When appropriate makes strategic use of digital media to enhance understanding of findings / · No Highlighting
· Skims text
· Very few notes,
· Some misunderstandings of text and meaning. / · Unprepared with text
· unprepared with text does not recall or has not read text
· No attempt was made to understand text
Questioning / · Has prepared several high level questions based on the text
· Asks several higher level questions during discussion / · Has prepared a variety of questions
· Asks thoughtful questions during discussion
· Is open to questioning / · Has very few questions
· Asks very few questions / · Has not prepared questions
· Does not ask questions
· When questioned is unable to respond appropriately
Speaking / · Moves conversation forward
· Speaks to all participants
· Thinks before answering
· Refers directly to the text
· Makes connections to other speakers
· Considers all options
· Offers insightful contributions
· Uses appropriate and academic language all of the time
· Builds on other’s comments
· Prompts others to make comments / · Comments often and encourages others
· Addresses the issue, stays on topic
· Reflects on the text often
· Responds to questions
· Respectfully considers all opinions
· Offers interesting ideas and makes preliminary connections
· Uses appropriate and academic language most of the time
· Builds on other’s comments / · Emphasizes only own ideas
· Addresses only teacher’s questioning.
· Tends toward debate not dialogue
· Ideas do not always connect
· Comments neglect details of text. Only focuses on opinion
· Only uses academic language a small portion of time / · Disruptive or argumentative
· Mumbles or is silent
· Makes no connection to previous comment
· Does not use appropriate academic language
· Is engaged in another activity other than listening or speaking for clarification.
Listening / · Demonstrates effective listening skills (eye contact, nods, takes notes)
· Writes down thoughts and questions
· Builds on other’s comments
· Questions for clarification when needed
· Asks for clarification when needed
· Develops clear understanding of speaker before making judgment, is reflective / · Demonstrates effective listening skills (eye contact, nods, takes notes, body aligns with speaker).
· Takes notes
· Asks questions for clarification when needed
· Suspends judgment until speaker is finished,
· No outside activity, only listening / · Rarely demonstrates effective listening skills (eye contact, nods, takes notes)
· Loses track of conversation
· May interrupt or judges other’s ideas without asking for clarification
· May sporadically engage in another activity but stops and self regulates. / · No effective listening skills demonstrated
· Attempts to dominate
· Interrupts speakers in middle of sentence
· Repeats same ideas
· No eye contact or is engaged in another activity rather than listening
Document A: Progressive Tax
Notes: / Progressive taxation is a tax system used mostly in the US and the European countries. Progressive taxation levies taxes according to the individuals’ income. This means that an individual with high income will pay more in taxes than an individual with a low income.Tax base of progressive taxation: The tax base of progressive taxation system is dependent on the following 2 factors –
· Income: The key concept of progressive taxation depends on the income of an individual. The tax rate increases for high income earners and decreases for low income earners.
· Expenditure: Progressive taxation can also be based on the expenditure through various sales taxes. The idea is, the more you spend, the more taxes you’ve to pay.
Progressive taxation is considered by many, as the best tax system as it helps the government to earn more taxes as well as protect the lower income individuals from the burden of high taxes. Let’s now check out the advantages of progressive taxation –
Advantages of progressive taxation: Proper distribution of money: Since progressive taxation allows income-based taxes, a person with low income will pay much less than a person with a high income. This is an effective way for proper distribution of wealth.
1. Protects the lower income group: Progressive taxation system allows the lower income group to pay less in taxes. Since most of the working population falls in this category, progressive taxation is favored by most.
2. Protection during recession times: Progressive taxation system also protects people during recession times because if their income drops, they fall into lower income bracket.
3. Stable income stream: Progressive taxation also allows the government to have a stable income stream even in times of depression.
Disadvantages of progressive taxation: Opposes equality: Many believe that progressive taxation opposes the Constitution which promotes equal rights for citizens. By taxing the higher income group at a higher rate, progressive taxation defies the Constitution.
1. Prevents taking high paying jobs: Progressive taxation system may also prevent individuals from taking a high paying job because most of their income would be taken away as taxes. It also discourages individuals to work harder to gain higher incomes.
2. Encourages emigration: High progressive taxation system can encourage high earning workers to move overseas to escape the tax system.
3. Encourages hiding of assets: High progressive taxation system can also encourage high income earners to opt for off-shore banking by which they can hide their assets and save taxes.
Although there are some controversies regarding the usefulness of progressive taxation system, it is still regarded as one of the most effective tax system in the world. The US government has adopted this tax system and has stuck to it since it is working for them and the government is earning revenue from it.
"Progressive Taxation System: A Brief Study on Its Pros and Cons « Credit Terms." Progressive Taxation System: A Brief Study on Its Pros and Cons. N.p., n.d. Web. 13 June 2012. <http://www.credit-terms.com/tax/progressive-taxation.html>
1) Explain what progressive taxation is and how it works
2) What factors do the progressive taxation system rely upon and how do their factors affect the tax rate for the American citizen.
3) Compare the advantages and disadvantages of the progressive taxation system and how it effects American society.
Document B- Flat Tax
Notes: / What Is a Flat Tax?In tax terms, "flat" simply means everybody pays the same rate; there is no graduation in the rate structure. If you graph income levels versus tax rates, you get a "flat" line. The "flat tax" is a tax on income with a single uniform rate and a standard deduction.
Unlike the current system, a flat tax is simple, fair, and good for growth. Instead of the 893 forms required by the current system, a flat tax would use only two postcard-sized forms: one for labor income and the other for business and capital income. Unlike the current system, which discriminates based on the source, use, and level of income, a flat tax treats all taxpayers equally, fulfilling the "equal justice under law" principle etched above the main entrance to the U.S. Supreme Court building. And unlike the current system, a flat tax would lower marginal tax rates and eliminate the tax bias against saving and investment, thus ensuring better economic performance in a competitive global economy.
There have been several flat tax proposals over the years, all of them based on the path breaking proposal developed by two Hoover Institution economists. While no two plans are identical, they all share common features that fix the major flaws of the current Internal Revenue Code. Simplicity and fairness are also natural consequences of these component features of tax reform.
These major features of a flat tax are:
A Single Flat Rate. All flat tax proposals have a single rate, usually less than 20 percent. The low, flat rate solves the problem of high marginal tax rates by reducing penalties against productive behavior, such as work, risk taking, and entrepreneurship.
Elimination of Special Preferences. Flat tax proposals would eliminate provisions of the tax code that bestow preferential tax treatment on certain behaviors and activities. Getting rid of deductions, credits, exemptions, and other loopholes also helps solve the problem of complexity, allowing taxpayers to file their tax returns on a postcard-sized form.
No Double Taxation of Saving and Investment. Flat tax proposals would eliminate the tax code's bias against capital formation by ending the double taxation of income that is saved and invested. This means no death tax, no capital gains tax, no double taxation of saving, and no double tax on dividends. By taxing income only one time, a flat tax is easier to enforce and more conducive to job creation and capital formation.
Territorial Taxation. Flat tax proposals are based on the commonsense notion of "territorial taxation," meaning that governments should tax only income that is earned inside national borders. By getting rid of "worldwide taxation," a flat tax enables U.S. taxpayers and companies to compete on a level playing field around the world.
Family-Friendly. All flat tax proposals have one "loophole." Households receive a generous exemption based on family size. For instance, a family of four would not begin to pay tax until its annual income reached more than $30,000.
Consumption-Based. A tax code that does not discriminate against saving and investment is considered a consumption-based tax system, regardless of whether taxes are deducted from the paycheck or collected at the cash register. In this respect, a flat tax is a type of consumption tax. The difference between a flat tax and a national sales tax is where the tax is collected. A flat tax is levied on income-but only once and at one low rate-as it is earned. A sales tax is levied on income-but only once and at one low rate-as it is spent.
Both the flat tax and the sales tax differ dramatically from the U.S. Internal Revenue Code. The current tax code has numerous forms of double taxation, such as its treatment of saving and corporate income. The current tax code also has several forms of wealth taxation or asset taxation, such as the capital gains tax and the death tax. (These also are forms of double taxation since the assets were acquired with after-tax dollars.) The current tax code even has provisions that force taxpayers to overstate their income, such as forcing businesses to "depreciate" the cost of new investment instead of allowing immediate and full deduction (a policy known as "expensing") when costs are incurred.
None of these forms of double taxation, wealth taxation, or overtaxation exist in either a flat tax or a national sales tax, which is why public finance economists categorize both systems as consumption-based taxes.
How a Flat Tax Would Work for Individual Taxpayers
Compared to the current system, a flat tax is extremely simple. Households pay tax on their labor income using a 10-line individual postcard. They do not need to worry about reporting dividends, interest, and other forms of business/capital income. Those forms of income are taxed at the business level, thus obviating any need to tax them at the individual level since that would violate the principle of no double taxation.
How a Flat Tax Would Work for Businesses Like the individual postcard form, the business postcard form is very simple. All businesses, from Microsoft to a hot dog stand, would play by the same rules. There no longer would be separate tax rules for partnerships, sole proprietorships, S corporations and regular corporations. All business operations in America, whether owned by a U.S. company or owned by a foreign company, would pay tax on the income that they earn in the United States.
Foster Ph.D., J.D. "The New Flat Tax—Easy as One, Two, Three."What Is Flat Tax? Understanding the New Flat Tax. The Heritage Foundation, 13 Dec. 2011. Web. 13 June 2012. <http://www.heritage.org/research/reports/2011/12/the-new-flat-tax-easy-as-one-two-three>
1) Summarize Paragraph 2 in your own words.
2) Analyze and explain the difference between a national sales tax and a flat tax.
3) Rate the six major features described in the article in order of importance in your judgment. State your reasoning for the order you have decided on.
Document C: Comparison of taxes
Notes: /Drum, Kevin. "Tax Follies."The Washington Monthly. Washington Monthly, 8 Oct. 2007. Web. 13 June 2012. <http://www.washingtonmonthly.com/archives/individual/2007_10/012212.php>
1) After analyzing the chart above what conclusion can be drawn regarding the level of taxes that each income level pays?
2) Interpret the information in the chart above and explain the tax responsibilities for each income group. Do you consider this to be fair or unfair?
3) In your opinion does this chart support the flat tax or progressive tax system? Explain your answer.
Document Based Question: Research Chart