UT - Why Do We Have Taxes? Lesson

Why Do We Have Taxes?

The government provides public goods and services for the community as a whole. To pay its bills, the government needs revenue or a source of income. The money that the federal government uses to pay its bills comes mostly from taxes. Taxes shift resources from private individuals and businesses to the government.

Taxes have been a part of American history since our earliest days. In fact, taxes are one of the reasons the colonists fought for independence from Great Britain in the first place. When our Constitution was being written, the authors knew that our young country would need taxes for items such as roads and defense. They put provisions in the Constitution that spelled out exactly how the formal tax legislation process would work. A proposed tax law, called a bill, follows specific steps through both houses of Congress. The informal tax legislation process is the way you as a citizen can affect legislation by making your views known to legislators. You can take part in the informal tax legislation process by joining lobbying groups, attending town meetings, circulating and signing petitions, and voting for candidates sympathetic to your views. You can also write, call, or e-mail members of Congress.

Tax Timeline Interactive

Learn more in the activity below.

 

 

Tax Timeline Self-Assessment

Practice what you learned in the activity below.

 

 

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