Section 3: Taxes
SECTION DESCRIPTION
In these lessons, students review taxes from the point of view of both the individual and the government. Students learn key vocabulary words about payroll, such as gross versus net income and payroll deductions. Understanding deductions, including federally funded deductions, is pertinent to understanding how the government makes policy decisions.
FOCUS QUESTIONS FOR THIS SECTION
How do taxes affect income?
How does the government utilize taxes?
LESSON OBJECTIVES
Define tax as a government fee on a business, individual, activity, or product.
Differentiate between gross income and net income.
Define payroll deductions as money automatically subtracted from the gross income to pay taxes, insurance, retirement benefits, and child care.
Define Social Security, Medicare, and Medicaid as federal government programs funded by taxes that provide benefits for the retired, disabled, and those who cannot afford to pay for these benefits.
Give examples of ways to earn a tax credit.
Give examples of ways a business is tax exempt.
LESSON OBJECTIVES
Explain how income tax and sales tax work.
Explain how a government tax revenue is used.
Name and explain different parts of a paycheck such as gross income and payroll deductions.
Give examples of scenarios in which people pay taxes.
LESSON OBJECTIVES
Compute gross income.
Show examples of mandatory and voluntary deductions from payroll.
Apply knowledge of government tax revenues. Given a scenario, explain where a government tax revenue is applied and why.
LESSON OBJECTIVES
Analyze and compare different payroll stubs, compensations, deductions, and benefits.
LESSON OBJECTIVES
Evaluate the costs and benefits of a flat tax and graduated tax as it relates to incomes in different tax brackets.