Economics | 3.3 State and Local Tax

briefly interview someone you know who owns a home and pays taxes. The goal is for students to analyze the tax burden that state and local governments place on taxpayers (we will study federal taxes in a later lesson).

Ask the person the amount they pay each year for the following taxes. If the person is not sure what these taxes are, you are responsible for explaining it to them (accept the person's closest estimate if they are unsure). Add up the total when finished:

Part I - Opening Questions. (5 points)

• Who did you interview?

• What is their relationship to you?

Part II - Data Collection (5 points)

Type of tax

Annual amount paid

Sales tax

$

Local income tax

$

State income tax

$

Local property tax

$

Excise taxes

$

Other taxes (specify)

$

Total

$

Part III -Analysis (5 points each)

• Ask the person if (in their opinion) they are paying: 2) too much; b) too little; or c) a reasonable amount of taxes to state and local governments each year.

• Ask the person their opinion on progressive taxation (wealthier pay higher rates than the poor): does the person think this is fair? Why or why not?