What is a tax?
There
are two types of taxes (more or less):
Taxes
that people pay and taxes that companies pay.
Of
the taxes that people pay, basically there's two main kinds:
Paycheque
Tax and Sales Tax
Paycheque Tax
Everyone
who has a job pays tax. Any time someone earns money, they need to pay tax. If
Amanda earns $100 dollars a week, she probably only gets to keep about $80 of
it. The rest goes to the government. The government can then use it for things
like _________________, ________________, ________________, and ________________.
Sales Tax
This
one is sometimes called HST. It's the tax that is added to anything you buy. If
a chocolate bar costs 80 cents, you're probably going to pay around 95 cents
for it. This tax money, the extra 15 cents on that chocolate bar, it doesn't go
to the store owner. It goes to the same government.
Company Taxes
A
company needs to pay tax on every dollar it earns. If Google makes a million
dollars, they need to pay a few hundred thousand in tax. This tax money, again,
goes to the same government.
