Labor, Wages, and Taxes Econn H

What is a craft union?

• labor union whose members perform the same kind of work; same as a trade union. 

What is an industralized union?

• labor union whose members perform different kinds of work in the same industry.

What is a strike?

• union-organized work stoppage designed to gain concessions from an employer.

What is a picket?

• demonstrate or march before a place of business to protest a company’s actions or policies.

What is a boycott?

• protest in the form of refusal to buy, including attempts to convince others to take their business elsewhere.

What is a lockout?

• management refusal to let employees work until company demands are met. 

What are company unions?

• unions organized, supported, or run by an employer. 

Union activities

strike, picket, boycott.

Employer Resistance

Lockout, company unions

Antiunion backlash: What is the Right-to-work law?

• state law making it illegal to require a worker to join a union as a condition of employment.

What are independent unions?

• labor union not affiliated with the AFL-CIO or the Change to Win Coalition. (AFL = American Federation of Labor)

What are examples of independent unions?

• Major League Baseball Players Association, US Airline Pilots Association

Kinds of Union arrangements: What is a closed shop?

• arrangement under which workers must join a union before they are hired: usually illegal.

Kinds of union arrangements: What is a union shop?

• arrangement under which workers must join a union after being hired,

Kinds of union arrangements: What is a modified union shop?

• arrangement under which workers have the option to join a union after being hired.

Kinds of union arrangements: What is an Agency shop?

• arrangement under which nonunion members must pay union dues. 

What is Civilian Labor Force?

• individuals in the United States who are 16 year old and are either working or actively looking for a job. 

What is Unskilled labor?

Jobs that don’t require special skills or training.

What is an example of unskilled labor?

• mopping floors

What is semi-skilled labor?

Jobs that require some mechanical skills to operate machines (basic training)

What is an example of a semi-skilled labor?

Landscaping

What is skilled labor?

Workers who operate complex equipment and have little supervision

What is an example of skilled labor?

Electrician

What is professional labor?

Workers who have highest level of education and skill in their area

What is an example of professional labor?

Teacher, doctor

Wages:

• Federal minimum wage is currently $7.25/hour

  • New York City, Long Island, Westchester- minimum wage is $17/hour (Remainder of NY $16/hour)

What is minimum wage?

• is the lowest wage that can be paid by law to most workers.

Glass celling

• seemingly invisible barrier hindering advancement of women and minorities in a white-male dominated organization. 

What is the Equal Pay Act of 1963?

• prohibits wage and salary discrimination for jobs that require equivalent skills and responsibilities. 

What is the Civil Rights Act of 1964?

• prohibits discrimination in all areas of employment on the basis of gender, race, color, religion, and national origin. 

What is the set-aside contract?

• guaranteed contract, or portion of a contract reserved for a targeted group, usually a minority.

What is sin-tax?

• a relatively high tax designed to raise revenue while reducing consumption of a socially undesirable product. These taxes can change behavior. 

What is an example of sin-tax?

Liquor and tobacco

What is the distribution of income?

• the way in which income is allocated among families, individuals, or other groups- is always affected by taxes. 

What is the incidence of tax?

•  or the final burden of the tax. 

What is an indirect tax?

• a tax that can be shifted to others. 

What are examples of indirect taxes?

buisness property tax, or sales tax

What is direct tax?

 one that cannot be shifted to others.W

What are examples of direct taxes?

Personal income tax or driver’s license fee

What are tax loopholes?

• exceptions or oversights in the tax law allowing taxpayers to avoid taxes. 

What is sales tax?

• general state or city tax levied on a product at the time of sale.

What is Internal Revenue Service (IRS)?

• branch if the US Treasury Department that collects taxes. 

What is tax return?

• annual report filed with local, state, or federal government detailing income earned and taxes owed. 

What is the benefit principle (of taxation)?

this principle of taxation states that those who benefit from government goods and services should pay in proportion to the amount of benefits they receive.

What is an example of the benefit principle (of taxation)?

• Gasoline taxes- gas tax is built into the price of gasoline, therefore, people who drive more pay more gas taxes.

What is the Ability-to-pay (principle of taxation)?

• principle based on the belief that people should be taxed according to their ability to pay, regardless of the benefits they receive. 

What is an example of the Ability-to-pay (principle of taxation)?

•  Individual income tax- requires people with higher incomes to pay more than those who earn less. 

What is proportional tax?

• (or flat) tax in which percentage of income paid in tax is the same regardless of level of income. Ex. If the income tax rate is 20 percent, an individual with $10,000 in taxable income pays $2,000 in taxes. If taxable income is $100,000, than $20,000 in taxes.

What is progressive tax?

•  tax where percentage of income paid in tax rises as level of income rises. 

What is regressive tax?

• tax where percentage of income paid in tax goes down as income rises. 

What is flat tax?

• proportional tax on individual income after a specified threshold has been reached. 

What is value-added tax?

• a tax on the value added at every stage of the production process. 

What is alternative minimum tax?

• personal income tax rate that applies to cases where taxes would otherwise fall below a certain level. Under this provision, people had to pay a minimum tax of 20 percent, regardless of other circumstances or loopholes in the tax code. 

Advantages and disadgantes of alternative tax apporaches?