Taxeshow do they work?

Welcome!Please sit down in your seats and clear your desk. All you will need is a writing utensil, and I dont care if it is a pen or a pencil . Taxeshow do they affect you?

Warm-up : Famous QuotesThe hardest thing in the world to understand is the income tax.I shall never use profanity except in discussing house rent and taxes.The power of taxing people and their property is essential to the very existence of government. Albert Einstein

Mark Twain

James Madison

How do taxes affect you?

Taxeshow do they work?Discussion QuestionsWho decides what taxes you pay? Why do you think that taxes need to be collected? What would happen if there were no taxes paid in the next 20 years?

Taxeslets figure it out!Taxes are collected to pay for public works that the average citizen does not directly pay for.like roads, schools, police, fire protection, government salaries, military and other public facilities and services. Taxes are levied on income, purchases, property, business and commerce. These taxes pay for the government to operate.

Local Government providesLocal roads, signals, and signsLibrariesCommunity ParksStreetlights and sidewalksPolice and Fire ProtectionCity CourtsCity JailsHealth Clinics and Hospitals (sometimes)

State Government ProvidesState highways and bridgesState colleges/universitiesAssistance with funding local schoolsState police and highway patrolsState prisonsState courtsState parksJob training programs

Federal Government ProvidesGoods and ServicesNational defenseVeterans programsMilitary and economic assistance to other countriesForeign embassiesAgricultural programs TransportationSpace programPrisonsFBITax collectionNational parksFederal Reserve SystemScientific ResearchTransfer PaymentsFood StampsHousing payments for the poorSocial Security and MedicareHealth care for the poor (Medicaid)

Sample Paycheck DeductionsFirst weeks wages$200.00

Federal Tax Withheld$9.00State Taxes$5.00Social Security Tax$8.40Medicare Tax.$2.90Total deductions$25.30

Net Pay(what you take home)$174.70

Tax Game1. You will receive 10 M&Ms and a card telling you your role in the tax process. (Congress, IRS tax collector and citizen)2. If you are in congress, you have 5 minutes to decide on 5 things to tax and how much to tax them, on a scale of 1-5 M&Ms. (For example 1 M&M for Nike shoes)3. At the same time, as a citizen, you need to write down the 5 most important things you own and the 3 most important food/drinks you consume.4. If Congress decides to tax your items, you have to pay with your M&Ms. If they dont, you keep them. But, as an income tax, everyone pays 3 M&Ms.5. The IRS agents collect the taxes and give them to the Congress, but they keep 10% of them to operate the agency.6. If you are lucky, you will not have all your M&Ms taxed, if you are not, you may lose them all.* Here is the bottom linetaxes pay for many of the things we all take for granted, but sometimes, we dont know what all the taxes are. So, you need to be prepared to pay taxes on many things your entire life!

Follow-Up Questions1. JAGS- Do you think that taxes are necessary? Why or why not? 2. JAGS- If you were in the government, would you try and decide to change the way taxes are collected and what is taxed?3. JAGS- How do taxes affect you? Explain.