The text discusses the fairness of taxes and states While everyone can agree that government needs to raise revenues through taxation, there is considerable debate about what each person’s fair share of the tax burden should be. To help societies decide which taxes are most fair, two principle

1. Fair Share of Tax Burden- The text discusses the “fairness of taxes” and states: “While everyone can agree that government needs to raise revenues through taxation, there is considerable debate about what each person’s “fair share” of the tax burden should be. To help societies decide which taxes are most fair, two principles of taxation are considered – the benefits-received principle and the ability-to-pay principle.” Basic Economic Principles, Chapter 11, page 153. In the Discussion, please share your opinion on a hypothetical problem: How will your State tax citizens to fund: 1) a major, cross-State highway; and 2) public transportation in the State Capitol (bus, commuter train, ferry). Should only users be taxed (the benefits-received principle); or should all tax-payers fund these two things (ability-to-pay principle); or do you have another idea? 2.Jounral Entry- The journal will document your thoughts, things you have learned during that week and comments about the economy and politics of the USA and / or your State. submit a one-page double spaced journal entry.

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