Unit 2: Lesson 1

What are taxes? ◦ Taxes are funds, or money, that local, state, and federal

governments collect to pay their bill Who pays taxes?

◦ People who hold jobs, buy things, or own property pay taxes. In short just about everyone pays taxes.

How Do I pay taxes?◦ Almost invisible. Automatically charged when

purchasing anything including utility bills.◦ Automatically taken out of paychecks.

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How am I affected by taxes?◦ We have extra taxes on nearly everything that we buy.◦ Our take-home pay is reduced (income tax)◦ Property tax (home, car, business)◦ Utilities◦ GET “free” services – police, armed forces, roads

Why do I need to know about taxes?◦ KNOW how taxes affect your pay! ◦ (At Finance Park, you will be required to pay income and

payroll (Social Security and Medicare) taxes.)◦ You must be able to calculate your net monthly income to

know exactly how much money you’ll have left to spend after taxes.

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Tax◦ Book Definition: A required payment to the

government.◦ Write your definition on the right side of the page.

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7 people read the cards. Vote if you think if it is real or fake. Check the corresponding box on page 45.