1. Taxes © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

2. Introduction Tax is money citizens pay the government. Taxes pay for public goods and services. Taxes also pay the people who work for the government. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

3. Types of Taxes Money that is earned is called income. The government collects a tax on the money people earn. This tax is called income tax. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

4. Income Tax Federal Income tax is paid to the federal government, which is responsible for governing the whole country. State Citizens must also pay income tax to the state government where they live. If you live in Missouri, for example, you must pay income tax to the state of Missouri. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

5. Sales Tax Customers pay sales tax when they buy something from a store. Sales tax is a tax on goods and services purchased. The amount of sales tax you pay depends on how much you purchase. Sales tax is collected by the state government. Local governments, such as counties and cities, can also collect sales tax. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

6. Property Tax Property tax is a tax on property that people own, such as a house, land, car or boat. The tax is based on how much the property is worth, or its value. The owner of the property must pay the tax to the local government. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

7. Income Tax Funding Federal income tax pays for the defense and security of our country. This includes different branches of the military, such as the army or navy. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

8. Income Tax Funding Another area that gets paid for by tax money is Social Security. This program provides retired Americans with money each month to pay their bills. The federal government also uses tax money to build highways, run the space program and deliver the mail. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

9. Spending State Income Tax Most state income tax dollars pay for schools, health care and programs to care for the poor. The state also uses taxes for building and repairing roads and bridges. Prisons are also paid for with state tax money. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

10. Spending Sales Tax Sales tax is often used to pay for police, paramedics and fire departments. These services can be very expensive. Sales tax helps pay for them. Libraries, swimming pools and parks are also funded by sales tax. Roads, street lights and signs are another expense local governments pay for with tax dollars. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

11. Spending Property Tax Property tax is used to pay for roads, schools, hospitals, parks and other public services. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

12. Conclusion The government collects taxes from citizens. Tax dollars are used to pay for goods and services that benefit all people. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com

13. tax Money paid by citizens to the government. © 2013 Created by Sally Camden ~ The Reflective Educator ~ www.thereflectiveeducator.com