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LESSON:
PAYING TAXES
Lesson
Summary:
This book is
an excellent primer on taxes for young people. The many topics
covered include why people pay taxes, kinds of taxes, how taxes are spent,
and what makes a good tax.
Concept: Taxes
Definition: Taxes are required
payments people make to the government.
Comprehension Questions:
What is a
tax?
A tax is a required payment people make to the
government.
What three
levels of government are supported by taxes?
Local, state, and
federal
What is an
income tax?
A tax paid on the money (wages and salaries) people
earn
What is a
property tax?
A tax paid on property and buildings that people
own.
What are
examples of taxes people pay?
The most significant taxes are
probably on property, income, and purchases (sales tax). There are
also many other taxes that we don’t notice as much, such as taxes on phone
use and electricity, gasoline, license plates, fishing licenses, airline
taxes, road and bridge tolls, etc.
Why do
people pay taxes? Must they?
Yes! Taxes are compulsory;
you must pay them. Taxes help fund the activities of government, such
as roads, police and fire protection, the armed services, public education
and transportation, parks, retirement payments (Social Security),
etc.
In 1773,
what was the famous example of the American colonists rebelling against
paying taxes to England?
The Boston Tea Party
In the
1700’s, the book says the Frenchmen were taxed for their wigs! Can
you explain why?
Wigs were probably
worn by wealthier Frenchmen, and the French government thought they could
get more money by taxing them!
What is
the tax you pay when you purchase something at a store?
Sales
tax
What is an
excise tax?
This is a tax paid on a particular good or service,
sometimes a luxury item. An example is the tax you pay on each gallon
of gasoline.
What is a
tariff?
A tax paid on products imported into a country.
What other
taxes are subtracted from one’s income?
The main ones are the
unemployment tax and social security tax
Where do
local governments get most of their taxes?
From property
taxes
What
services do state taxes support?
State roads, universities, public
education, and expenses necessary to operate the state
government
What
services are supported by federal taxes?
Armed services, space
program, national parks, federal courts, salaries of federal employees,
and many, many more things, including disaster relief.
What are
some questions one can ask to help determine whether a tax is good or bad
tax?
Does the tax serve a common good? Is it a fair tax? Will
people be able to afford to pay the tax? Is the tax easy to
collect? Does the tax help the economy?
Other
Concepts: Goods and Services
(especially government services) |
