Why do we pay taxes? (ppt)

3. This lesson explores why we pay taxes and what the money is spent on.

5. Nobody likes paying taxes. Just ask your parents ….. but …..

7. In 1943 5 ‘Giant Evils’ were identified in a famous report by William Beveridge. They were: Squalor Filth Ignorance Lack of knowledge Want Poverty Idleness Lack of work Disease Sickness

8. Measures were put in place to deal with these ‘evils’ after the Second World War. It meant that the Government had taken responsibility to care for the people of Britain ‘from the cradle to the grave’

9. The ‘Welfare State’ remains a basic principle of the British Government. It is a commitment to: Health Education Employment Social Security (help for people who do not have enough money to look after themselves and their family)

10. There is no crock of gold. The money to pay for these things comes from the taxpayers of Britain And only with their agreement

11. Before each election the Government, and the other political parties have to tell the voters how much tax they are going to collect, and what they intend to spend it on. Their plan is called a ‘Manifesto’.

12. The voters can play a part in the decision by voting for the party with the ideas that they agree with most closely.

13. The Chancellor of the Exchequer of the party which is elected has to decide : How much money to collect from the salaries/wages of people who are working How much of this to spend on each of the services that people need

14. Workers in Britain currently pay about ¼ of their salary to the Government in tax. Higher paid people pay more. When we buy things the Government charges 20% Value Added Tax (VAT). Food, books and children’s clothes are exempt

15. How much did you pay the Government in VAT? How much would it have cost without the VAT?

16. Extra Duties are levied on cigarettes, alcohol and petrol. About ¾ of the price your parents pay for petrol is tax and duty. The government raises over £22,000,000,000 on petrol every year!

17. In 2009: The NHS cost £102,000,000,000 Education cost £79,000,000,000 Social Security cost £186,000,000,000

18. The electorate (voters) will only agree to a certain level of taxation. This leaves individuals with the opportunity to make donations to causes they wish to see better funded. They usually do this through organisations called charities.

19. Some charities are international and raise money for causes across the globe, others support causes in the UK. Some smaller charities operate in a specific neighbourhood, or support activities which take place in one building. Which charitable causes do you support?

20. Divide into groups. Each group will represent a Political Party. Discuss what is important to you. If you had the power of the Chancellor of the Exchequer, how would YOU spend the billions of money raised every year in taxes. Can you agree a name for your party?

21. Be Chancellor for a Day! The Houses of Parliament

22. Expenditure Decide what percentage of your expenditure will go to each particular area.

23. Income Decide your priorities for raising tax.

24. Think about how you will explain why you have chosen to tax some areas higher than others. How can you convince your voters that your priorities are better than other parties?

25. Hold a Class Election using the Click here! It must be a Secret Ballot. Remember: you do not have to tell anyone how you have voted.

26. Glossary Democracy – a system of rule which gives the people the opportunity to vote for the people who represent them. Responsibility – duty, task Principle – rule, belief Manifesto – programme, Electorate – people entitled to vote

29. Useful Web Links http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/fs/en?cids=Google_PPC&cre=Money&gclid=CPf_k8zXk4cCFR9oMAodVXEotQ – a beginner’s guide to the taxation system http://www.bbc.co.uk/schools/citizenx/index.shtml - being a citizen – games and guides to local, national and international democracy http://www.ukyouthparliament.org.uk/ – UK Youth Parliament represent young people in the U.K working closely with the government http://www.headsup.org.uk/ - an online debating space for under 18s and teachers to discuss political issues

30. More Web Links http://www.childrens-express.org/ - a project of learning through journalism for 8-18year olds – articles written by children on politics http://www.childrenscommissioner.org – a children’s guide to how money is spent on children in the U.K giving the chance to put forward opinions to the U.K government’s representative for children