ARE TAXES FAIR? FRom chApTER 9
ARE TAXES FAIR? From chapter 9 Fostering Economic Literacy for K–12 Students through the College, Career, and Civic Life (C3) Framework Created by Anand R. Marri
Goal/Inquiry Arc (Dimension 1 of the C3 Framework) This middle-school civics/government inquiry arc explores issues of taxation and fairness. Students will begin with the question of why we tax. Students may identify criteria for fairness and efficiency and use those criteria to judge types of taxes. This arc enables teachers to build knowledge about what taxes are and why we have a taxation system, and students to gain familiarity with some basic types of taxes, including income, property, and sales taxes, and types of taxation systems (regressive, proportional, and progressive taxes). Students can learn about how federal, state, and local taxes support the economy as a function of the U.S. government. ·· ··
Compelling question: Is there a fair and efficient way to fund and maintain the public services we want? Supporting questions: How can we generate the revenue we need to pay for public services without disrupting the economy by reducing the ability of people to pay for goods and services? Would we accept a tax system that generates enough revenue, but encourages undesirable behavior—is such a system sustainable? How do we decide whether taxes are “fair”? Should senior citizens have to pay for schools they will never use? Should pacifists be expected to pay taxes that go to support the military? Should the wealthy be asked to pay more because they are able, or is that punishing success? Why does society need taxes?
Explain to students that there are many types of taxes. Three activities are commonly taxed: earning income, spending money/engaging in transactions, and © 2017 Taylor & Francis
owning or transferring wealth or property.These activities can be taxed in various ways, usually expressed as a percentage, but also occasionally as a flat fee, leading to the many types of taxes we have today. For e xample, the tax on the income that taxpayers earn is progressive. This means that the tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay. Similarly, corporations pay taxes on their profits as corporate income tax. Teachers should inform students that nearly everyone benefits from some government service paid for by federal taxes. The six types of taxes (individual income taxes, employment taxes, corporate taxes, other receipts, excise taxes, and estate and gift taxes) are the major sources of revenue for the federal government, in addition to customs duties and fees and income from the Federal Reserve system. Questions for Discussion/Applying Disciplinary Concepts and Tools (Dimension 2 of the C3 Framework) With competing and supporting questions in place, students could begin to examine points of agreement and disagreement about taxes and fairness. Some of the disciplinary concepts and tools may include: ·· ·· ··
D2.Eco.1.9–12. Analyze how incentives influence choices that may result in policies with a range of costs and benefits for different groups. D2.Eco.2.9–12. Use marginal benefits and marginal costs to construct an argument for or against an approach or solution to an economic issue. D2.Eco.12.9–12. Evaluate the selection of monetary and fiscal policies in a variety of economic conditions.
For this inquiry arc on taxation and fairness, students may choose and evaluate sources such as ·· ·· ·· ·· ··
Americans for Tax Reform. (n.d.). Taxpayer protection pledge. Buffet,W. (2011, August 14). Stop coddling the super-rich. New York Times. Mankiw, N. G. (2009). Smart taxes: An open invitation to join the Pigou club. Eastern Economic Journal, 35, 14–23. Martin, G. (2012). Nothing is certain but death and taxes. Reich, R. (2011, April 4).Why we must raise taxes on the rich. Huffington Post.
Students will begin work in groups of four. Distribute one of the articles for each group. More than one group may be assigned the same article. Tell them to read and discuss their article carefully and be ready to explain its point of view to students in other groups. When the students fully understand the article and have answered the questions, shuffle the groups so that each new group has an “explainer” (an expert) for each of the other articles. Ask the explainers to teach © 2017 Taylor & Francis
their article to others in the group. As the students discuss these articles, walk from group to group, answering questions and ensuring student comprehension. After the groups are familiar with all articles, lead a class discussion to further assess students’ understanding. Evaluating Sources and Using Evidence (Dimension 3 of the C3 Framework): D3.4.9–12. Refine claims and counter-claims attending to precision, significance, and knowledge conveyed through the claim while pointing out the strengths and limitations of both Students should use various technologies and skills to find information and to express their responses to compelling and supporting questions through wellreasoned explanations and evidence-based arguments (National Council for the Social Studies, 2013a, p. 53).Through the rigorous analysis of sources and application of information from those sources, students should make the evidence-based claims that will form the basis for their conclusions. Closure/Communicating Conclusions and Taking Informed Action (Dimension 4 of the C3 Framework): D4.8.9–12. Apply a range of deliberative and democratic strategies and procedures to make decisions and take action in their classrooms, schools, and out-of-school civic contexts Inform students that the current gas tax is 18.4 cents a gallon, the current maximum capital gains tax is 15%, and the maximum marginal income tax rate is 39.6%. Without discussion, ask students to write on a piece of paper what their “gut feeling” on these taxes is—should they be raised, lowered, or kept about the same? In order to preserve the independence of their judgments, ask students to hide their answers, perhaps by folding their paper. Poll student responses and then ask for volunteers to defend their answers. Ask students who have not responded what more they would want to know to fully support their opinions. For homework, students should draft a letter to the Congressional Ways and Means committee summarizing their recommendations for how to further study these two important taxes.Tell students to take into account the best of their classmates’ reasoning in making their recommendations. Students also can explore other types of taxation (carbon taxes, consumption vs. income tax, flat-tax proposals, etc.). This can include critically evaluating tax reform proposals by 2016 presidential candidates.
Reference National Council for the Social Studies. (2013a). The college, career, and civic life (C3) framework for social studies state standards: Guidance for enhancing the rigor of K–12 civics, economics, geography, and history. Silver Spring, MD: National Council for the Social Studies.
© 2017 Taylor & Francis
Goal/Inquiry Arc (Dimension 1 of the C3 Framework) This middle-school civics/government inquiry arc explores issues of taxation and fairness. Students will begin with the question of why we tax. Students may identify criteria for fairness and efficiency and use those criteria to judge types of taxes. This arc enables teachers to build knowledge about what taxes are and why we have a taxation system, and students to gain familiarity with some basic types of taxes, including income, property, and sales taxes, and types of taxation systems (regressive, proportional, and progressive taxes). Students can learn about how federal, state, and local taxes support the economy as a function of the U.S. government. ·· ··
Compelling question: Is there a fair and efficient way to fund and maintain the public services we want? Supporting questions: How can we generate the revenue we need to pay for public services without disrupting the economy by reducing the ability of people to pay for goods and services? Would we accept a tax system that generates enough revenue, but encourages undesirable behavior—is such a system sustainable? How do we decide whether taxes are “fair”? Should senior citizens have to pay for schools they will never use? Should pacifists be expected to pay taxes that go to support the military? Should the wealthy be asked to pay more because they are able, or is that punishing success? Why does society need taxes?
Explain to students that there are many types of taxes. Three activities are commonly taxed: earning income, spending money/engaging in transactions, and © 2017 Taylor & Francis
owning or transferring wealth or property.These activities can be taxed in various ways, usually expressed as a percentage, but also occasionally as a flat fee, leading to the many types of taxes we have today. For e xample, the tax on the income that taxpayers earn is progressive. This means that the tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay. Similarly, corporations pay taxes on their profits as corporate income tax. Teachers should inform students that nearly everyone benefits from some government service paid for by federal taxes. The six types of taxes (individual income taxes, employment taxes, corporate taxes, other receipts, excise taxes, and estate and gift taxes) are the major sources of revenue for the federal government, in addition to customs duties and fees and income from the Federal Reserve system. Questions for Discussion/Applying Disciplinary Concepts and Tools (Dimension 2 of the C3 Framework) With competing and supporting questions in place, students could begin to examine points of agreement and disagreement about taxes and fairness. Some of the disciplinary concepts and tools may include: ·· ·· ··
D2.Eco.1.9–12. Analyze how incentives influence choices that may result in policies with a range of costs and benefits for different groups. D2.Eco.2.9–12. Use marginal benefits and marginal costs to construct an argument for or against an approach or solution to an economic issue. D2.Eco.12.9–12. Evaluate the selection of monetary and fiscal policies in a variety of economic conditions.
For this inquiry arc on taxation and fairness, students may choose and evaluate sources such as ·· ·· ·· ·· ··
Americans for Tax Reform. (n.d.). Taxpayer protection pledge. Buffet,W. (2011, August 14). Stop coddling the super-rich. New York Times. Mankiw, N. G. (2009). Smart taxes: An open invitation to join the Pigou club. Eastern Economic Journal, 35, 14–23. Martin, G. (2012). Nothing is certain but death and taxes. Reich, R. (2011, April 4).Why we must raise taxes on the rich. Huffington Post.
Students will begin work in groups of four. Distribute one of the articles for each group. More than one group may be assigned the same article. Tell them to read and discuss their article carefully and be ready to explain its point of view to students in other groups. When the students fully understand the article and have answered the questions, shuffle the groups so that each new group has an “explainer” (an expert) for each of the other articles. Ask the explainers to teach © 2017 Taylor & Francis
their article to others in the group. As the students discuss these articles, walk from group to group, answering questions and ensuring student comprehension. After the groups are familiar with all articles, lead a class discussion to further assess students’ understanding. Evaluating Sources and Using Evidence (Dimension 3 of the C3 Framework): D3.4.9–12. Refine claims and counter-claims attending to precision, significance, and knowledge conveyed through the claim while pointing out the strengths and limitations of both Students should use various technologies and skills to find information and to express their responses to compelling and supporting questions through wellreasoned explanations and evidence-based arguments (National Council for the Social Studies, 2013a, p. 53).Through the rigorous analysis of sources and application of information from those sources, students should make the evidence-based claims that will form the basis for their conclusions. Closure/Communicating Conclusions and Taking Informed Action (Dimension 4 of the C3 Framework): D4.8.9–12. Apply a range of deliberative and democratic strategies and procedures to make decisions and take action in their classrooms, schools, and out-of-school civic contexts Inform students that the current gas tax is 18.4 cents a gallon, the current maximum capital gains tax is 15%, and the maximum marginal income tax rate is 39.6%. Without discussion, ask students to write on a piece of paper what their “gut feeling” on these taxes is—should they be raised, lowered, or kept about the same? In order to preserve the independence of their judgments, ask students to hide their answers, perhaps by folding their paper. Poll student responses and then ask for volunteers to defend their answers. Ask students who have not responded what more they would want to know to fully support their opinions. For homework, students should draft a letter to the Congressional Ways and Means committee summarizing their recommendations for how to further study these two important taxes.Tell students to take into account the best of their classmates’ reasoning in making their recommendations. Students also can explore other types of taxation (carbon taxes, consumption vs. income tax, flat-tax proposals, etc.). This can include critically evaluating tax reform proposals by 2016 presidential candidates.
Reference National Council for the Social Studies. (2013a). The college, career, and civic life (C3) framework for social studies state standards: Guidance for enhancing the rigor of K–12 civics, economics, geography, and history. Silver Spring, MD: National Council for the Social Studies.
© 2017 Taylor & Francis
