Tic Tac Taxes!

EDUCATOR'S VERSION

This lesson printed from:
http://www.econedlink.org/e370

Posted November 7, 2002

Standards: 16, 17

Grades: 3-5

Author: Cross-Curricular Connections

Posted: November 7, 2002

Updated: September 4, 2009

DESCRIPTION

This lesson will assist students in identifying various taxes and the services they help governments provide.

KEY CONCEPTS

Government Expenditures, Government Revenues, Income, Role of Government, Taxation

STUDENTS WILL

  • Distinguish among federal, state, and local taxes and the goods and services they support.
  • Identify three basic types of taxes (income, sales, and property) and describe the purposes of each

INTRODUCTION

guy State, federal, sales, property -- taxes taxes taxes! Why do we pay taxes? Why do we pay so many kinds of taxes, and what is the benefit to us? What are the goods and services that the government provides for us? How does the government pay for those goods and services? This lesson will take you through the different types of taxes governments impose, and the goods and services the governments provide in return.


PROCESS

Our governments, at all levels, provide us with goods and services that are sometimes more difficult for companies or individuals to provide. A paving company wouldn't be able to charge individual drivers for the roads it creates. A hospital can't collect from people who can't afford to pay. Governments have a role in our society to provide some of these goods and services on behalf of all citizens. But governments have to pay to get the job done! Those costs are called expenditures. The government doesn't have its own paving company, and even if it did, it would have to pay the people who work there! How do governments pay for the goods and services they provide? They pay for these things through a system of taxation, to gain necessary revenues.

Activity One:
Name some goods and services that are provided by the government. Brainstorm a list of these items with a group of classmates.

* Why do governments need to provide these services?

Activity Two:
Use The Economics of Taxation page provided by the U.S. Department of The Treasury to find out more about the kinds of taxes governments impose, and the goods or services they provide. [Students may need some assistance in comprehending the text in this fact sheet. A whole class or small group read-through and summary discussion will help students prior to working on the related activities in this lesson.]

* Which of the goods and services you named are provided by the federal government, which are provided by the state government, and which by the local government? What can you add to your list?

Use this Activity Sheet or create a three-column chart to place the goods andmoney services where they belong. If a good or service is provided by more than one government, place it in both columns.

Activity Three:
How does each level of government get the money or revenue it needs to be able to provide the goods and services you have listed? Taxation is the primary revenue generator for our governments. There are three main kinds of taxes:

  • Income Tax
  • Sales Tax
  • Property Tax

Work with a partner to define each type of tax. Go back to the activity sheet and add each tax to the appropriate column in the revenues section. Use "Primary Source" and "Other" distinctions to show which levels of government gain most from each type of tax. Refer to the Economics of Taxation page again to help you be as specific as possible.

ASSESSMENT ACTIVITY

Work with a partner to play the Tic Tac Taxes Game. Be careful! You'll need to draw on the ideas you learned about today to win the squares!

CONCLUSION

calender

Discuss with your class the types of taxes you learned about today. What kinds of services or goods does each one help our governments provide? Which level of government provides the opportunity to go to school? Where do roads and highways come from?

The governments we support through our taxes provide valuable services. Do you think the tax structures you have studied today make sense? Do you have other ideas about how the government should pay for the services it provides? If you do, you may wish to submit your ideas to your local, state, or federal representatives. Taxation is a big deal -- and everyone's ideas should be represented. But everyone must understand the basics of taxes and government roles in order to be represented well.

EXTENSION ACTIVITY

Visit the IRS resource for kids called IRS Tax(i) History . At this site you can learn about taxation throughout history. You can work on this independently or with a partner. Complete the follow-up activities for each section to be sure you are getting the most out of your adventures.