Grade: 4 Lesson #1

What are taxes and why are they important?

S.S.4.FL.1.8 Income earned from working and most other sources of income are taxed. Describe ways that the revenue from these taxes are used to pay for government provided goods and services.

S.S.4.FL.1.8 Income earned from working and most other sources of income are taxed. Describe ways that the revenue from these taxes are used to pay for government provided goods and services.

Taxes: Sources and Uses

Lesson Number : 1

Correlated Florida Standards (See Full Text on Cover Page)

  • LAFS.4.L.3.5
  • LAFS.4.RI.3.7

Essential Question

  • What are taxes and why are they important?

Learning Goals/Objectives

  • Explain why we pay taxes
  • List different types of taxes and describe them
  • List some goods and services that are paid with taxes
  • Understand how to calculate Florida sales tax

Overview

  • Students will explore taxes, their sources and uses. They will learn about four types of taxes, the public goods and services they pay for, distinguishing whether they are paid for by local/state, and/or federal taxes. Students will also learn how to identify deductions on a paystub, practicing how to calculate Florida sales tax.

Materials

  • PowerPoint Presentation: Taxes, Sources, and Uses – Included in Lesson file (lesson plan embedded into PPT notes)

Time

  • 30 minutes

Activity Sequence

INTRODUCTION/HOOK (5 min)

  • Display PowerPoint presentation slides 1-4. Tell students that today’s lesson will explore taxes, their sources and uses. Brainstorm what students know about taxes, review lesson vocabulary, and ask them to interpret the death and taxes proverb and image.

ACTIVITY (20 min)

  1. Discuss PowerPoint presentation slides 5-6. Refer to embedded presenter notes. (3 min)

Say: There are many types of taxes. The four most common taxes are: federal income tax; state income tax; sales tax; and property tax. Read and discuss the description of each on slide 7 and follow hyperlinks for each.

  1. Federal Income Tax Link: Joe’s Paystub Activity(5 min)

Have students analyze Joe Beakens paystub to answer three questions. Have students work collaboratively to discuss and share answers.

  • Question 1 Review:Question 1 asked to identify Joe’s largest deduction during the current pay period. The paystub shows for deductions including federal and state income tax, social security. The greatest deduction was the federal withholding at $106.
  • Question 2 Review:Question 2 asked to analyze the year-to-date cumulative deductions. The total amount deducted was $1,502.10
  • Question 3 Review:Question 3 asked to infer the meaning of gross and net pay. I can see that net pay is a smaller amount than gross pay. I also noticed that subtracting the amount deducted for the current pay period ($250.35) from the gross pay equals $1,102.98. Therefore, I can infer that gross pay is the amount earned prior to deductions and the net pay is the amount after deductions.
  1. State Income Tax Link: Did you Know? Analyze the Map Activity (2 min)

Have students analyze the map and discuss findings.

Say:There are nine states with no state income tax. (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming). Residents of these states only pay sales and federal income taxes.

  1. Sales Tax Link: Practice Calculating Florida Sales Tax(10 min)

Say:Florida has a 7% sales tax – which means that 7 cents are added for every dollar spent. Let’s practice calculating sales tax for a few items.

Do: Refer to enclosed Handout 1 – Calculating Florida Sales Tax

$10.70 / $32.10 / $85.60
$374.50 / $963.00 / $24,610.00

CLOSURE (5 min)

Do:Have students orally answer lesson review questions on slide 19 and revisit death and taxes proverb and image on slide 21. Compare how students’ impressions have changed after the lesson.

OPTIONAL EXTENSION SUGGESTION/HOME LEARNING

  • Taxes (Video)
  • Explaining Taxes to Kids(Lesson Plan)
  • Where Did Money Go? (Worksheet)
  • Where Did Money Go? (Worksheet Answer Key)

Sources/Bibliographic Information that contributed to this lesson:

  • Lesson adapted from PwC’s Earn your Future Curriculum – Taxes, Sources and Uses - Grade 3-5 Lesson

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