General Information

Title: Types of Taxes

Subject Area: Social Studies/Economics

SOL 7.7 - Virginia Standards of Learning

The students will describe the role of the governments in the United States economy, with emphasis on:

• provision of public goods and services;
• protection of consumer rights, contracts, and property rights;
• the impact of government taxation, borrowing, and spending on individuals and on the production and distribution of goods and services; and
• the role of the Federal Reserve System and the impact of monetary policy on the money supply and interest rates.

Grade Level: 8

Lesson Topic: Types of Taxes

Descriptive Overview: Students will describe the most common types of taxes levied by the government. Students will also be expected to identify specific taxes that fall into the major tax types.

Advantages of Medium: Students will research the impact of taxation on individuals through the use of the Internet.

Lesson Specifics

Lesson Objectives/Goals: The student will:

• identify specific tax types that fall into major tax categories.
• explain the purpose of taxes.

Assumed Skills or Prerequisite Skills:

• Students must be familiar with the unit vocabulary
• Students must know basic math computation skills.

Learning Environment:

• One computer - teachers must download a worksheet for this lesson. Also a transparency of notes should be made to use on an overhead projector.
• Computer lab setting- no materials will be needed

Instructional Set

• Students should briefly review the history of taxes. Teachers should review the role of taxation in world history.
• In the United States, the government was given the power to tax by Article I, Section 8 of the Constitution

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. How does the government acquire money to operate on a federal, state and local level?
2. What are the 3 major types of taxes? How are they different?
3. Why is the government allowed to collect taxes?

Teaching Strategies

1. Download and print worksheets for this lesson.

   
   Percent of Income Worksheet
   Type of Tax Organizer.

2. Discuss the percent of income that is collected as taxes. Compare the percentages in 1960 and 2000
3. After comparing the percentages above, students should refer to snapshot of taxes, that identifies the amount of money that the average family pays in taxes for the years 1957, 1977 and 1997. Students are able see tax collection increases over a period of 60 years
4. The Percent of Income Worksheet should be completed as the lesson progresses to check the understanding of the concepts presented.)
5. Review the ability -to -pay principal of taxation.
6. Students should identify the 3 major types of taxes through brainstorming or an Internet search. http://www.investorwords.com/ .

   
   The three major types of taxes in the Unites States today are:
   Progressive Tax
   Proportional Tax

7. Brainstorm and discuss type of taxes that are familiar to students on the board.
8. After this discussion, students should complete the Type of Tax Organizer
9. Discuss answers and have students make necessary changes.
10. Teachers should summarize the lesson by reviewing the amount of money that is collected in tax revenue. Make sure that students can describe the purpose of taxes.
11. At the end of this lesson students should write a journal entry describing the impact of taxation on individuals

Terminology/Vocabulary:

Regressive Tax
Progressive Tax
Proportional Tax
Ability to pay principal

Practice: Students will complete Tax Organizer and Percent of Income Worksheet, throughout the lesson.

Assessment: Students will complete a journal activity describing the impact of taxation of individuals.

Enhancements

• Research the taxation laws of other countries around the world.
• Keep a tally of all of the taxes that the students pay in one week. Compare that tally to that of adults.

Extensions

Not applicable