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5.1 The U.S. Tax System (Due SoC 1/12/23)

Last updated 12 months ago
18 questions

Day 1 1/10/23

Why Do We Pay Taxes?

In this lesson, we will explore why we pay taxes and how our money is used. The federal, state, and local governments enact tax laws that provide for a variety of government services, but what are the differences?

Read the first article and the second article just through the second section titled “Understanding Local Tax”. Then, answer the questions.

How Are My State Taxes Spent?


Local Tax Definition

Required
15
Name 3 ways state governments use tax dollars.

1._______
2._______
3._______
Required
15
Name 3 ways local governments use tax dollars.

1._______
2._______
3._______

If Paychecks Could Talk

Now that you’ve learned about how tax money is used at the federal, state, and local level, let’s take a deeper dive specifically into our federal tax dollars. Watch this video to learn where federal tax revenue comes from and what exactly the federal government is spending that money on.

NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in the lesson here.
Required
3

What does FICA consist of?

Required
4

What is an example of discretionary spending? (select two correct answers)

Required
3

The following options are benefits we receive as a result of government spending EXCEPT…

Payroll Tax [vs. Income Tax]

In the previous resource, you learned that you pay Payroll, or FICA taxes, and Income taxes. Let’s take a deeper look at the differences between these two important taxes! Skim through this article and then answer the questions.

Flat Tax vs. Progressive Tax
Required
20
Who pays this tax?

Payroll (FICA) Taxes
_______

Income Tax
_______
Required
20
Are these taxes considered a flat tax or a progressive tax? If it’s flat, what percentage?

Payroll (FICA) Taxes
_______

Income Tax
_______
Required
20
What are these taxes used for?

Payroll (FICA) Taxes
_______

Income Tax
_______

9 Types of Taxes in the US

Let’s take a look at some different ways we pay our taxes. Review this infographic and answer the questions.
Required
10

Which of the 9 types of taxes is the largest source of revenue for the government?

Required
10

Which of the following categories do you currently pay taxes for?

Day 2 1/11/23

Three Types of Tax Systems

You now know more about where tax money comes from and how it’s being spent. But how does it all work? There are 3 main types of tax systems. Watch this video to learn about the differences between regressive, proportional, and progressive taxes. Then, answer the questions.
Required
10

What kind of tax system does the United States use?

Required
10

Explain the main differences between regressive and progressive tax systems.

How Tax Brackets Actually Work

Because the U.S. uses a specific type of tax system that you learned about in the previous resource, people are taxed on a rate schedule that breaks down their income into tax brackets. Watch this video and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.
Required
3

A tax deduction…

Required
3

Which statement BEST describes marginal tax rates?

Required
3

Which of the following statements describes the CORE misconception addressed in this video?

Exit Ticket

Required
3

All of these are top 3 areas that the federal government spends tax money on EXCEPT:

Required
3

The United States has a "progressive" tax system. This means that...

Required
3

If someone asks you what your “tax bracket” is, they are asking about your marginal tax rate which is…