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The Whys of Taxes

Theme 4: What Is Taxed and WhyLesson 1: Federal/State/Local Taxes

 

Most federal revenue comes from income taxes. State and local revenue comes from transaction taxes, income taxes, and property taxes. The type and amount of tax varies from state to state and between local communities.

Sales taxes are the most common kind of transaction taxes. Taxes withheld from a paycheck include income taxes. Homeowners pay property tax, but renters may contribute to their landlord's property tax with each rental payment.

materials:

Activities
Activity
Activity 1: Town Manager for a Day How will you raise revenue without cutting services in Springville?
Activity
Activity 2: Taxes in Your State Take a virtual fieldtrip to learn more about taxes in your state.
Activity
Activity 3: State and Local Revenue and Expenditures Discover where state and local money comes from and where it goes.
Activity
Activity 4: Can You Balance the National Budget? Try your hand at balancing the national budget.
Assessment
Assessment
Complete the assessment page to test your understanding of Federal/State/Local Taxes.
Links
Links
You can learn more about the role that taxes play in the community in Theme 4, Lesson 2.
quick check
How does the major source of tax revenue for the federal government differ from that of state and local governments?


tax trivia
Did You Know?
The three largest Federal government expenditures are Retirement funding (such as Social Security, Medicare), National Defense, and Social Programs.
The single largest state level expenditure is _____.
  • A.
  • B.
  • C.
  • D.


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