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Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts

Saturday, April 10, 2010

The Ins and Outs of Taxes










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As April arrives and I think about my own taxes, I realize how little I understand about how income taxes work. Benjamin Franklin believed “… in this world nothing is certain but death and taxes.” If this is true, a lot of us better brush up on our tax knowledge! I learned a lot just by looking through The Gateway resources Joann highlighted this week. The first lesson uses traditional lecturing with visual aids, partner activities, and whole-class discussions to simplify the concept of how taxes work. This assignment can be a very valuable tool, especially if you use the “What if” activity and the extension activities at the end which introduce some discovery learning to make the students think a little more about the subject. When students research things on the internet, they find out new things for themselves. I feel like they “own” the learning more, which will hopefully make it stick.

The second lesson focuses on the ability-to-pay principle and why the U.S. uses a progressive tax system. This lesson helps compare the taxation in our country with taxes in other countries, and how a person’s income affects their taxation rate. You may want to build upon lessons like this to make them more interesting and memorable for your students. The assessment at the end of the second lesson asks students to choose a tax system they think is best and defend it in an essay. Expand on this and give your students a choice of projects to answer this question. Instead of writing an essay about their chosen tax system, an artistic student might create a display board with the information (or a glog if they want to go even more high tech.). A verbal student might decide to create a live or video presentation of their findings. Some students might be motivated to interview people around them…maybe they can poll people with an online polling tool. Some students really enjoy writing and they may want to do an essay. They can even format their writing as a newspaper or an illustrated short story.

The last Gateway resource we are discussing this week is a 3-lesson series that looks at the big picture of taxes and how they work from an individual perspective. These are multimedia-based lessons that use video, internet, and spreadsheet creation. They include lectures, pre-made worksheets, and a teacher or student-created spreadsheet. The class works together to create a new federal budget and debates it in teams. I was looking around online to find ways to embellish these lessons, and I found a lot of sites that report annual salaries of famous people. Other salaries are publicly available such as teacher salaries and government worker salaries. Wouldn’t it be fun to figure out how much taxes a famous athlete or actor would owe compared to a teacher? The following resource from USA Today does just that. (http://www.thegateway.org/browse/36855) The activity was created for high school students and it includes a debate on federal taxes. The last few pages of this resource (http://www.thegateway.org/browse/33489) include many ways to present the information and activities you can use along with many of the above activities. Play around with these ideas to combine things from all of these resources. Soon you’ll have a perfect set of lessons to get your students up to speed this tax season.

The Tax Man Cometh

Americans have long had strong opinions about taxes. Occasionally in our history there have been tax revolts, such as the Boston Tea Party, the Whiskey Rebellion, and more recently, California’s Proposition 13 in the late 1970s. Once a year – every April 15 – an elderly man in my neighborhood flies the Jolly Roger from his flag pole in protest. On the flip side, Oliver Wendell Holmes said that taxes are the price that we pay for civilization, and many concur. Taxes pay for our roads, our schools, social services, national security, and many other things. Due to hearing dissenting opinions about taxes, students often have many questions about them, and the role that taxes play in our society.
This week’s picks include resources on taxes from two organizations. Two lessons are from the Federal Reserve Bank of St. Louis, which offers free educational materials on a host of economic and personal finance topics. Users can search for materials by topic, grade level, subject, and educational standards. All lessons are reviewed and rated by teachers. The third lesson is by Thirteen Ed Online, the educational Web component of WNET, PBS’s leading station in New York. Thirteen Ed Online offers free standards-based lesson plans and classroom activities, online mentors, workshops, and online reviews of curriculum-based Web sites in addition to instructional television. All lessons are aligned to McREL and NCTM standards.

Income Taxes: Who Pays and How Much?
http://www.thegateway.org/browse/dcrecord.2010-03-26.3523225653
Subjects: Economics, Financial literacy, Civics, Taxes
Grade: 9-12

In this lesson, students learn about individual federal income taxes, and why we have them. The lesson addresses specific questions, such as: What is individual federal income tax? How and when is it paid? How is the individual income tax structured? What is a perfect tax structure? What are the different categories of taxes? What is the correlation between tax burden and income groups? What if the tax structure were changed? What effects would a different tax structure have on taxpayers? What effect would a different tax structure have on the government?



U.S. Income Inequality: It’s Not so Bad
http://www.thegateway.org/browse/dcrecord.2010-03-26.2753987646
Subjects: Economics, Financial literacy, Civics, Taxes
Grade: 9-12

Did you know that Americans pay lower income taxes than many other countries? In this lesson, students learn about the redistribution of wealth through taxation. They use various household scenarios to examine the ability-to-pay principle of taxation, and then analyze and compare two tax systems on the household scenario using the progressive tax system and a flat tax.

Taxes: Where Does Your Money Go?
http://www.thegateway.org/browse/dcrecord.2009-12-31.6430925202/
Subjects: Economics, Financial literacy, Civics, Taxes
Grade: 9-12

This lesson presents information on why we have taxes, what taxes are used for, and how different income brackets pay different taxes. Students also learn about their individual responsibility to pay taxes, and that their gross salary does not always reflect the amount of money that they will actually take home. Students also examine ways to lower taxes through deductions, retirement accounts, and other activities.

~Joann's Picks - 4/10/10~