State and Local Taxes

When you explored national and global economies, you learned that federal, state and local governments are empowered by The Constitution of the United States to collect money from citizens. Then, the government spends it to provide services to citizens that they would otherwise not be able to access individually.

In this topic, you will explore the relationship between tax collection and the services provided by your tax dollars. Is there a new bridge going up over a local river? Is your local police department getting new patrol cars? Your state and local taxes make these things possible. Also, you will take a close look at the differences between federal and state taxes.

Essential Question

• How do local and state governments receive and redistribute tax dollars?