Day 35

Economics and US Gov't:  A Match Made in Philidelphia

Learning Targets:  Students will be able to....

• Explain how the U.S. Constitution establishes an economic system based on capitalist principles
• Describe how the US Federal Reserve influences economic growth and contraction
• Understand how fiscal policy and taxation 

Opener: Quickwrite

• Besides raising revenue, what other motives does government have to tax a good or service?  Is there anything that government can't tax?

Activity #1: Taxation in reality - Mini-Lecture

Federal Taxes

• Income Tax
• Progressive Tax vs. Flat Tax
• Social Security, Medicare, Medicaid
• Excise Tax
• "Sin" Taxes vs Luxury Taxes
• Gasoline, Tobacco, Jewelry, and Perfume
• Other
• Corporations 
• Capital Gains (profit on investment)
• Estate Tax (inheritance)

State and Local Taxes

• Property 
• Utilities
• Sales Tax

Activity #2: YOU MAKE THE CALL!  -  Student Judicial Review

US v. Ramsey

On April 15, 1992, George Ramsey entered an Internal Revenue Service (IRS) taxpayer assistance office in a federal building to protest the Government's use of tax money for military expenditures. Ramsey displayed a sign, distributed handbills, and explained his beliefs to taxpayer service representatives and individuals who had come to the office for taxpayer assistance. Ramsey did not request or receive a permit to distribute handbills in the building as required by posted regulations. IRS officials called Federal Protective Officers, and one of the officers ordered Ramsey to leave the office after learning Ramsey was distributing handbills without a permit. The officers arrested Ramsey when he refused. Ramsey resisted the officers by going limp, and the officers carried him from the office.

Before trial, Ramsey informed the district court he intended to represent himself. After questioning Ramsey at length and advising him to obtain counsel, the district court accepted Ramsey's waiver of counsel. After hearing the evidence, the district court convicted Ramsey. The district court fined Ramsey fifty dollars for each charge and placed him on three years probation on the condition that Ramsey perform community service, file his federal income tax returns, and pay his federal income taxes.

On appeal, Ramsey first contends his conviction for issuing handbills without a permit is invalid because the Government's arbitrary refusal to issue permits for the IRS office infringes on his First Amendment right of free speech. 

Second, Ramsey contends his conviction for failing to comply with the lawful directions of a Federal Protective Officer is invalid because the evidence was insufficient to show the officer had legal authority to order Ramsey to leave the office. 

Third, Ramsey contends he did not knowingly and intelligently waive his Sixth Amendment right to counsel because the district court did not tell him the maximum penalties he faced or explain how the charges against him might be decided. 

Finally, Ramsey contends that the government's requirement that he file his federal income tax returns and pay his federal income taxes violate his pacifist religious beliefs. Ramsey told the district court he had not paid his income taxes for the past twenty years and did not intend to pay his current income taxes. 

Questions to Answer:

1.  Which of Ramsey's arguments do you think has the most merit?  Which has the least?

2.  Would you vote to overturn Ramsey's conviction?  Explain.

3.  What relationship or limitations, if any, can be found between taxation and religious freedom?

Full list of such cases can be found here:  https://www.irs.gov/privacy-disclosure/the-truth-about-frivolous-tax-arguments-section-i-d-to-e

Close - Student CWE Presentations