Theme 4: What Is Taxed and WhyLesson 1: Federal/State/Local Taxes
Most federal revenue comes from income taxes. State and local revenue comes from transaction taxes, income taxes, and property taxes. The type and amount of tax varies from state to state and between local communities.
Sales taxes are the most common kind of transaction taxes. Taxes withheld from a paycheck include income taxes. Homeowners pay property tax, but renters may contribute to their landlord's property tax with each rental payment.
Activity 1: Town Manager for a Day How will you raise revenue without cutting services in Springville?
Activity 2: Taxes in Your State Take a virtual fieldtrip to learn more about taxes in your state.
Activity 3: State and Local Revenue and Expenditures Discover where state and local money comes from and where it goes.
Activity 4: Can You Balance the National Budget? Try your hand at balancing the national budget.
Complete the assessment page to test your understanding of Federal/State/Local Taxes.
You can learn more about the role that taxes play in the community in Theme 4, Lesson 2.
How does the major source of tax revenue for the federal government differ from that of state and local governments?
Did You Know?
Taxpayers may indicate on their tax returns that money be given to the Presidential Election Campaign Fund. Test your tax trivia knowledge by answering the following multiple-choice question. Click on the correct answer. To assess your answers, click the Check My Answers button.
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