Social Studies 9-Economic Systems

Social Studies 9-Economic Systems

Social Studies 9-Economic Systems

Read pages 281-285 and answer the following related questions

What’s the connection between taxation and social programs?

  1. Why do governments collect taxes? Which levels of government collect taxes?
  1. What would most likely occur if governments did not collect as much taxes as they currently do?
  1. What does the Canadian federal government do with some of its collected taxes that aid other parts of Canada? What are the names of the two programs that benefit from the federal government’s taxes?
  1. The two types of taxes that individual Canadian citizen pays are ______tax & ______tax.
  1. A grade 9 student pays for taxes by
  1. What do other provinces have that Alberta does not have? Why might Alberta be the only province without this?
  1. What was the median income for families in 2005? What was the percent and dollar amount of taxes that the average family paid in 2005?
  1. Examine the two pie charts on page 282. In the tables below list the percentage of taxes that go to pay for the various services in each level of government. After you have completed this table answer the questions following.

Federal Service / % spent / Provincial (Alberta) Service / % spent
Environment / Environment
Recreation and Culture / Recreation and Culture
Transportation &
Communication / Debt Charges
Education / Protection of Persons or Property (e.g. firefighting, policing, etc.)
Foreign Affairs and International Assistance / Others
Resource Conservation and Industry / Transportation &
Communication
Health (transferred to provinces through the Canada Health Transfer) / Resource Conservation and Industry
Protection of Persons or Property (e.g. defencing, policing, etc.) / Social Services (e.g. affordable housing, child protection, and income assistance)
Debt Charges (money to pay back loans) / Education (e.g. Kindergarten to Grade 12
Other / Health
Social Services
(e.g., affordable housing
and pensions for senior citizens
and monies transferred to the
provinces through the Canada
Social Transfer)

Based on your understanding of taxation and social programs so far, do you believe the distribution of tax dollars indicated in these charts is appropriate? Does

the distribution reflect values you support?

  1. Examine the following flow chart and list as many programs and services that you can that are offered as a result of citizens paying their taxes.

Programs and Services (How many can you come up with?):

Fill in the blanks

  1. In all ______, including Canada, it’s ______the ______to avoid paying taxes. ______must ______what they earn, so government can ______and ______the tax they owe. The economic activity that governments tax is called the ______. The tax base pays for the ______provided by government, such as ______programs. ______involves not reporting your economic activity, so government cannot collect the tax you owe. People who work without paying taxes are part of the______— “underground” because it functions in ______from the government. The underground economy is also called the ______.
  1. How does economic decision making about taxes affect the quality of life of individuals?
  1. Based on the flow chart on this page, how can tax evasion affect programs and services for everyone? How might this affect quality of life?
  1. Read the cartoon on page 284 and answer the following:

a) What other examples of the underground economy can you identify?

b) To what extent does the underground economy affect quality of life for you and others?

Read the Mr. Equity’s advice column. After reading the letter by “uncertain in Alberta” and the two differing responses write your own response to the letter. Be sure to include your position on issues related to tax evasion supported with facts and evidence. Read your response with a classmate.