Taxes and Salary
Why take money away from my hard
earned paycheck?
UEQ and LEQ
• UEQ: How can JA Finance Park teach you
about the drastic impacts that taxes can have
on different parts of your life?
• LEQ: How can taxes benefit society, while at
the same time be a burden for taxpayers?
Vocabulary
• Tax
• Tax Types (Income, Retirement, Sales,
Inheritance, State, Federal)
• IRS
• Audit
• Refund
Think/Pair/Share
• Read the following statements/questions,
think about them for a minute and pair up
with a partner to come up with answers for
them.
– Write answers down, so you have them!
•
•
•
•
Define Tax.
Who Pays Taxes?
Why Pay Taxes?
What is Tax Money used for?
Highlight/Pair/Share
• With your same think/pair/share buddy, read
over the handout “What Are Taxes, and Why
Do They Exist?”
– Highlight information in the short reading to
answer the title, What Are Taxes and Why Do They
Exist.
– On the back of the sheet, with your partner,
summarize in a paragraph what you read and
highlighted.
– Discussion in class of reading.
Taxes: The Low Down
• Taxes
– Money collected to pay local, state, and national
government bills.
Who Pays Taxes???
• Citizens DO!!!
• Almost Everyone…
– Workers, shoppers, homeowners
Paying Taxes
• Constant invisible activity.
– Taxes are added in and you don’t realize it.
• Examples: Tax on clothing, food, bills
• Taken out of your pay.
– Income Tax taken out of your pay and given to the
IRS (Internal Revenue Service)
– April 15th, the day everyone loves to hate.
Paying Taxes
Tax’s Affect on You…
• Additional costs on everything.
– Food, clothing, entertainment, gas
– Annual Salary is worth much less.
• Repossession for not paying taxes.
– Tax Collector Comes Knocking
• Not paying or cheating on taxes can lead to an
audit.
– Homer Vs. The IRS
Tax Affect
Group Activity
• If someone was to give you a list of items and
taxes on those items, could you figure out
which taxes on items are real and which ones
are fake? Pair up and find out
• Using the “Real” and “Fake” handouts and the
Price We Pay Cards, figure out with your group
members, which taxes are real and which
taxes are fake, place the tax card under the
appropriate paper
• On page 41, mark next to each tax, if your
group thinks it’s real or fake.
Blueberry Tax
Fur Clothing Tax
Soda Tax
Playing Card Tax
Amusement Tax
Sparkler/Firework Tax
Jock Tax
The Truth
• ALL are Taxes!!!
CNN Money Homework
• How can the IRS and U.S. Government help
save people from difficult times and trouble
paying taxes/bills?
• Read over “Your Share of Stimulus Tax Breaks”
to find out.
• Answer the questions associated with the
article at the bottom of the article.
Where Does The Money Go???
• Can you figure out where the money goes???
• First: Cut out the tax cards.
• Second: With your group members, determine
whether each program shown on the cards is
a national government run program, or, a
state government.
• Third: As you and your group decide separate
the cards into three piles and fill in the two
columned graphic organizer.
Types of Taxes
• Three Main Types:
– Income (Payroll) tax
– Sales Tax
– Property Tax
• All three are paid so the government has
money to run different programs.
Sales Tax
Income Tax
What’s the Message?
Property Tax
What is the Message???
Figuring Out Sales Tax
GMI: Gross Monthly Income
How to Figure Out GMI