Where Taxes Go
By the end of this lesson, you can name the main kinds of taxes and the shared things they pay for, and see why a city's budget has limits.
The big idea
Roads, streetlights, fire trucks, schools, parks and trash pickup all cost money. Nobody pays for them alone. A city, state or country pools money from everyone through taxes, then a government decides how to spend it. That plan is called a budget.
The main kinds you'll run into:
- Income tax: a share of what you earn.
- Sales tax: added when you buy things.
- Property tax: paid by people who own homes and land, and it often pays for local schools.
A budget works like a family's money, only bigger. There's money in and money out. If a government spends more than it takes in, it has to cut something, raise taxes or borrow. People disagree about the right size of government and what it should pay for. That's a big part of what elections are about. This lesson isn't about who's right. It's about seeing how the system works so you can ask better questions.
3 stops in BERLO City
Tap "Go there" to fly straight to each stop. Answer the question before you move on.
1. City Hall
- Look for
- The West End runs on a fictional $5 billion budget and collects no city tax
2. The roads and trolleys
- Look for
- Streets, lights and public transport
3. The emergency vehicles
- Look for
- Fire, ambulance and police in the West End (tap a 911 vehicle)
3 quick questions
Your real-life task
Look at a pay stub or a store receipt. Find every tax line. Write down what you think that money pays for.
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