Basics of Taxation and Public Finance
Taxes are required by law at the federal and state levels and tax rates vary greatly from state to state. Many individuals grumble about taxes, either that they are required to pay too much, what tax dollars are spent on are inefficient, or that the tax system is overly complex and complicated. Tax revenues are used to fund government programs we need or want.
These contributions are collected in various ways that can include adding the tax to the cost of goods and services, employer deductions from your payroll check, and remissions to the state and federal government when you file your annual tax return or pay your property taxes.
In partnership with the Arkansas Center for Research in Economics, Dr. Mike Casey, Professor of Finance at the University of Central Arkansas, developed a set curriculum units for teaching the basics of Taxation and Public Finance using a variety of hands-on projects and activities. This curriculum includes lesson plans and activities for multiple days of class, as well as discussion guides, writing prompts, and assessment materials.
Students will explore questions like:
How am I compensated for my time and labor at a job?
What taxes am I responsible for paying?
Should I consider local, state, and federal taxes when financial planning?
Connections to Arkansas Learning Standards:
Personal finance standards appear in multiple courses and content areas in Arkansas, including personal finance, quantitative literacy, economics, family & consumer science, and in several business electives. The Taxation & Public Finance curriculum is designed to be a useful addition to any of these courses and includes strategies for team teaching & connecting topics across content areas. Specific learning standards met through activities include (All standards are specific to Arkansas):
PF.2.EI.1 Compare and contrast the methods by which employees are paid(e.g., direct deposit, paper check, payroll card)
PF.2.EI.2 Represent and analyze various types of income deductions and how they impact income (e.g., payroll taxes, deductions, gross pay, net pay)
PF.2.EI.3 Analyze differences among salary, hourly, commission, and overtime pay
PF.2.EI.4 Complete work related forms (W4, I9, Medical Forms, Life Insurance Forms, Retirement Forms
