1. TAXES, SOURCES, & USES S.S.4.FL.1.8 Income earned from working and most other sources of income are taxed. Describe ways that the revenue from these taxes are used to pay for government provided goods and services. Gr. 4 Financial Literacy

2. Vocabulary  Deduction : the act of subtracting something  Earnings: amount of money earned through work or investment  Expenses: amount of money you take out or spend  Income: money you bring in or earn  Federal Income Tax: the federal government charges a tax on personal or business income  Internal Revenue Service (IRS): federal agency that collects income taxes  Percentage: a part of a whole  Revenue, Wages: income Grade 4 Financial Literacy S.S.4.FL.1.8

3. Essential Question What are taxes? Why are they important? Grade 4 Financial Literacy S.S.4.FL.1.8

4. Image Source: http://www.calpacbrokers.com/wp- content/uploads/death_and_taxes.jpeghttp://www.calpacbrokers.com/wp- content/uploads/death_and_taxes.jpeg What message does the proverb reveal about taxes? (LAFS.4.L3.5) What information can be gained by analyzing the image? (LAFS.4.RI.3.7)

5. What are taxes and why are they important? Grade 4 Financial Literacy S.S.4.FL.1.8 Article 1 of the US Constitution gives the government power to establish and collect taxes. Taxes are monies charged by the government and paid by people or businesses that are used to provide public goods and services for the benefit of the community. Taxes are extremely important to our country and communities because they provide revenue for federal, state, and local governments to pay for essential services.

6. Introduction to Taxes Describe how taxes help our community. Use at least two details from the video. (LAFS.4.RI.3.8) Grade 4 Financial Literacy S.S.4.FL.1.8 Click to play video outside of PPT.

7. Introduction to Taxes Describe how taxes help our community. Use at least two details from the video. (LAFS.4.RI.3.8) Grade 4 Financial Literacy S.S.4.FL.1.8 Click to play video outside of PPT.

8. Types of Taxes Grade 4 Financial Literacy S.S.4.FL.1.8 Federal Income Tax State Income Tax Sales Tax Property Tax A percentage of your income is deducted from your paycheck and set aside to pay for federal income taxes. The higher your earnings, the more income taxes you must pay. Click here to learn more.Click here to learn more. In addition to federal income taxes, residents of most states get an additional percentage of their income deducted to pay for state income taxes. Click here to learn more.Click here to learn more. Sales taxes are charged for purchases made. The amount of the sales tax varies by state. In Florida there is a 7% sales tax. Click here to learn more.Click here to learn more. Homeowners are required to pay property taxes each year. The amount of property tax depends on the area where the home is located and its value. Larger homes in more desirable neighborhoods have higher property taxes. Next Slide

9. Did you know? Grade 4 Financial Literacy S.S.4.FL.1.8 Different cities and states have different tax laws and rates. People living in the majority of the country must pay both federal and state income taxes. What do you discover after analyzing the map below? Click here to return to previous slide.

10. Joe’s Paystub Grade 4 Financial Literacy S.S.4.FL.1.8 Analyze Joe’s paystub for the current pay period to help you answer the following questions. Click here to return to previous slide. 1. What was Joe’s greatest deduction during his current pay period? 2. What is the total amount of deductions Joe has had from year-to-date? 3. Based on your analysis of the paystub, what do you infer is the difference between gross and net pay? Click for Answers

11. Joe’s Paystub Grade 4 Financial Literacy S.S.4.FL.1.8 Analyze Joe’s paystub for the current pay period to help you answer the following questions. Click here to return to previous slide. 1. What was Joe’s greatest deduction during his current pay period? 2. What is the total amount of deductions Joe has had from year-to-date? 3. Based on your analysis of the paystub, what do you infer is the difference between gross and net pay? Federal tax ($106) $1,502.10 Gross pay is before deductions and net pay is after.

12. Public Goods & Services Taxes Pay For Grade 4 Financial Literacy S.S.4.FL.1.8

13. Determine which taxes are used to pay for the following public services. Grade 4 Financial Literacy S.S.4.FL.1.8 PUBLIC SERVICEFEDERALSTATE/LOCAL X X Police & Fire Department President’s Salary Schools Military & Veterans Benefits Public Library Prisons Space Program County & State Officials Highways & Roads National Parks Waste Management X X X X X X X X Next Slide

14. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. Click here to return to previous slide.

15. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. $10 x.07 =.70 $10 +.70 = $10.70 Click to Return

16. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. $30 x.07 = 2.10 $30 + 2.10 = $32.10 Click to Return

17. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. $80 x.07 = 5.60 $80 + 5.60 = $85.60 Click to Return

18. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. $350 x.07 = 24.50 $350 + 24.50 = $374.50 Click to Return

19. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. Try to calculate the sales tax for the items below. Click on the image to reveal the answer. $900 x.07 = 63.00 $900 + 63 = $963 Click to Return

20. 7% Florida Sales Tax $10 Grade 4 Financial Literacy S.S.4.FL.1.8 $350 $899 $23,000 $30 $80 To calculate sales tax, add.07 cents for every dollar spent. What would be the price of each item with sales tax? Click on the image to reveal the answer. $23,000 x.07 = 1,610 $23,000 + 1,610 = $24,610 Click to Return

21. Answers 1.What are taxes and why are they important? Grade 4 Financial Literacy S.S.4.FL.1.8 2. What are some types of taxes? 3. What are some goods and services taxes pay for? 4. How much sales tax do we pay in Florida? Taxes are monies charged by the government to pay for public goods and services. They are important because they pay for goods and services that benefit the community. Sales tax, federal/state income tax, property tax Police/fire department, schools, roads/highways, government officials, military, libraries, parks 7%

22. Review Questions 1.What are taxes and why are they important? Grade 4 Financial Literacy S.S.4.FL.1.8 2. What are some types of taxes? 3. What are some goods and services taxes pay for? 4. How much sales tax do we pay in Florida?

23. Grade 4 Financial Literacy S.S.4.FL.1.8 Image Source: http://www.calpacbrokers.com/wp- content/uploads/death_and_taxes.jpeghttp://www.calpacbrokers.com/wp- content/uploads/death_and_taxes.jpeg What message does the proverb reveal about taxes? (LAFS.4.L3.5) What information can be gained by analyzing the image? (LAFS.4.RI.3.7)

24. Sources Grade 4 Financial Literacy S.S.4.FL.1.8 Lesson adapted from PwC’s Earn your Future Curriculum – Taxes, Sources and Uses - Grade 3-5 Lesson https://www.pwc.com/us/en/about-us/corporate-responsibility/corporate-responsibility- report-2011/community/financial-literacy-curriculum-pdfs/taxes/1-taxes_3-5-lesson.pdf Colgren Communications and Mark McCarthy, (2004). Taxes. [Video Segment]. Available from http://www.discoveryeducation.com