Where Is My Money Going?

WhereIs My Money Going?

 

What are taxes?

·                 Taxes are money we pay to the government

·                 The money that the government collects isused to provide services to citizens

·                 There are 3 types of taxes: sales tax, propertytax, and income tax

 

Sales Tax

·                 Money we pay to stores or companies thatsell us goods or services is called sales tax.

·                 For example: You see a pair of pants thatcost $10.00. However, when you pay for it, you are going to pay a little extra money.That is the sales tax.

·                 You have a cell phone service that charges$40.00 per month. However, when you receive the billing statement, you see thatyou have to pay extra money for taxes.

·                 For certain foods and clothing, you do nothave to pay sales tax.

·                 States and provinces pay different amountsof sales tax

·                 In Manitoba, we pay 13% salestax. This money goes to the provincial government.

 

Income Taxes

·                 When you work or earn money, you have topay the government a percentage of money that you earned.

·                 At the beginning of the year, everyone whoworks has to file their earnings to the government. The government then decidesif you have to pay a certain amount to them. Some people actually have moneyreturned to them!

·                 Income taxes are the taxes thatdad works on every year.

 

Property Taxes

·                 If you own property (a house, building orland) you have to pay the government a certain amount of money.

·                 If the home, building or land is worth alot, you pay more money.

·                 If you do not pay your property taxes, thegovernment can take away your property.

 

What Kind of Tax Is it?

·                 A verterinarian buys a building for hisclinic. At the end of the year, he receives a bill for the building he owes.

·                 That’s right! It’s Property Tax!

 

·                 I earn $25.00 an hour. I worked for 4hours. I think I am going to receive a pay check for $100.00. However, when Ireview my chick, I notice that I only receive $85.00. What happened to mymoney?

 

·                 That’s right! Income tax!

 

Why Do We Pay Taxes?

 

·                 The federal government uses the money topay for things that have to do with the president (or,in Canada, the Prime Minister), our government, the military, andhelping other countries.

·                 The state (or province)uses the money to improve state roads, government services like publiceducation, social services, and hospitals.

·                 The city uses the money to pay forschools, fire departments, and trash and recycling collection.