Understanding Taxes
This worksheet introduces Grade 7 students to the concept of taxes, their purpose, and different types of taxes.
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Understanding Taxes
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand the basics of taxes and why they are important.
1. What is the primary purpose of taxes?
To generate profit for businesses
To fund government services and public goods
To allow individuals to save money
To control consumer spending
2. Which of the following is an example of a public good or service funded by taxes?
A new smartphone
Public roads and bridges
A private gym membership
A concert ticket
3. A tax on goods and services purchased is called a tax.
4. Income tax is collected from an individual's .
5. Property taxes are typically used to fund local services like and .
6. All taxes are collected by the federal government.
True
False
7. Taxes are only paid by adults who have jobs.
True
False
8. Explain in your own words why governments collect taxes.
9. Name two different types of taxes and provide a brief description of each.
Match each type of tax with its description.
10. Income Tax
a. Tax on the value of property owned
11. Sales Tax
b. Tax on earnings from wages or investments
12. Property Tax
c. Tax on goods and services purchased