1. Taxes What are they? Why do we need them? What are they used for?
How are they set up?

2. Creates a lot of controversy
Why do we need taxes?
Tax- Charge imposed by the government on people or property for public purposes
Creates a lot of controversy

3. National defense, legal system Parks, Highways, etc.
Taxes and Public Goods
National defense, legal system
Parks, Highways, etc.
Financed through taxes

4. Correct problems caused by negative externalities
What do taxes do?
Correct problems caused by negative externalities
EX: water and air pollution
Solution: Pollution tax