Tax Education - Opening Lesson Name of lecturer: School:

Basic tax terms Subjects of the Lesson State budget Government incentives through taxation The Tax Authority Tax types

Taxes and Actions

Tax Museum

1.Opening Event, personal experience Finding the measure of interest in the subject Example 1.What kind of services does the state provide its citizens? 2.How does it finance them in your opinion? 3.Imagine a decision is made to abolish taxes in Israel:  How do you thing the state would run?  What services would it provide? What would it give up?  How would it finance these services? 4.Imagine that some of the people decide they don't feel like paying taxes.  How would you feel about it?  Would you encourage them not to pay?  Would you be willing to pay in their stead? The role of the teacher: To allow students to express a personal experience To invite the group to respond 5

6 2. State budget Reference to state budget in relation to family budget The role of the teacher:  T o understand the role of the state budget  To understand the roles of tax benefits and their effect on different sectors of the population and on economic decision makers regarding the method of taxation  Short activity - divide the class into those who are entitled - periphery lobby, women's lobby, representatives of capitalists, people of limited means, citizens for equal tax burden

Hello, my name is Anat and I am 16. I like fashion very much and dressing in accordance with the latest trends is important to me. I want to tell you about something that happened to me recently: "I received 200 NIS from my parents for Hanukkah and during the vacation I happily went to Fox. I have had my eye on one of the shirts in this store for a long time. In the store, they had many sales, discounts and a huge variety of choices. I had to choose: I selected an amazing shirt with matching trousers, then I saw another beautiful shirt on sale. I measured it and found that it fitted me perfectly. I decided to get it as well. When I got to the register I realized I was over my budget by 80 NIS. What am I going to do now? Hello, my name is Anat and I am 16. I like fashion very much and dressing in accordance with the latest trends is important to me. I want to tell you about something that happened to me recently: "I received 200 NIS from my parents for Hanukkah and during the vacation I happily went to Fox. I have had my eye on one of the shirts in this store for a long time. In the store, they had many sales, discounts and a huge variety of choices. I had to choose: I selected an amazing shirt with matching trousers, then I saw another beautiful shirt on sale. I measured it and found that it fitted me perfectly. I decided to get it as well. When I got to the register I realized I was over my budget by 80 NIS. What am I going to do now? 7

Income Youths can make money Car washing Babysitting Cleaning

Budget Definitions A budget is a document that includes words and numbers that indicate expenses on items and goals. A budget is a forecast: If we spend a specific sum of money in accordance with this suggested distribution, we would achieve these results. A budget is therefore a series of goals, each one with a price tag. The budget connects required tasks with the amount of resources needed to complete them.

Family Budget  What is a family budget made of?  How does a family usually generate income? In other words, how does a family earn money to support itself?  Every family has expenses; what are the expenses most families have? 10

Expenses An expense is a sum of money spent by the state Shopping is a type of expense An electricity bill is an expense Revenues A revenue is a sum of money obtained by the state A salary is a type of revenue

Expenses An expense is a sum of money that is spent An army is a type of expense Revenue A revenue is a sum of money that is obtained Tax payment is a type of revenue Budget Imbalance When the expenses are greater than the revenues a budget deficit is created Education is a type of expense

The State Budget

“Nothing is more important to all types of organizations than allocation of resources: what is the goal, how much money is available to managers, what limitations come with this money and what obstacles stand in the way of spending it. Government budgeting is never simple. After all, of all the documents, the budget is the most political.” US Vice President Al Gore

Why is the Budget Political? It allows political players to interfere with decisions. It can be can be influenced by interest groups. Its result does not represent the will of the public, but of those whose pockets allowed them to operate professional lobbies and influence the votes of members of parliament.