Should local governments be allowed to increase taxes without citizens' approval?
In a few words, describe how local taxes are used in your community.
Local taxes are taxes charged by local governments, such as your state or city. These taxes are levied on income, sales, and property, and are used to fund public services. Knowing the different kinds of local taxes and how they are calculated can help you budget your finances.
Understanding Local Taxes
Property Tax: A tax based on the value of a property that is used to fund local services such as schools and public safety. Income Tax: A tax based on the amount of income a person earns. Income taxes are collected by the federal, state, and local governments. Sales Tax: A tax charged on goods and services that is collected by the state and local governments.
Concepts:
Local taxes can vary across different states and localities, even within the same state. Local taxes can be used to fund local government services such as transportation, education, and public safety. Local taxes are not always applied uniformly across different income levels. Some lower income earners may be exempt from certain taxes.
Did you know?
What are some of the ways that local taxes help fund governmental programs?
What are the differences between local, state, and federal taxes?
What role does the government play in the economy?
How does the collection of taxes impact the local economy?
Brain break: You've reached the end of the rainbow but you don't find a pot of gold. What do you find?
Question: What are the pros and cons of increasing local taxes in your city? Clues: • Research other cities who have increased their local taxes. • Research the economic and social impacts of increasing taxes. • Research the current local tax structure in your city. In pairs: Select and solve one of the tasks: A. Come up with a plan to increase local taxes in your city. B. Create a drawing which illustrates the impacts of increasing local taxes in your city.
What is a local tax?
- A tax levied by local government authorities on residents and businesses within their jurisdiction
- A tax levied by state government authorities on residents and businesses within their jurisdiction
- A federal tax levied on all Americans
What are some examples of local taxes?
- Property taxes, sales taxes, income taxes
- Excise taxes, import/export duties, estate and gift taxes
- Corporate income tax, payroll tax, capital gains tax
Who collects local taxes?
- Local government authorities
- State government authorities
- Federal government authorities
How do property taxes work?
- Property owners pay a percentage of the value of their property to the local government
- Property owners pay a flat fee to the state every year
- The federal government pays property owners based on the size of their property
In which country are there no local or municipal level governments to impose any form of taxation?
Work together in pairs: What do you think is the most important factor for determining local tax rates?