Economics

State and Local Taxes

Directions:
In this assignment, you will briefly interview someone you know who owns a home and pays
taxes. The goal is for you to analyze the tax burden that state and local governments place on
taxpayers (we will study federal taxes in a later lesson).
Part 1: Opening Questions: (5 points)

1. Who did you interview?

Marisol
2. What is their relationship to you?

Mom
Part 2: Data Collection: (5 points)
In your interview, ask the person about the amount they pay each year for the taxes listed below.
If the person is not sure what these taxes are, you are responsible for explaining it to them and
accept the person’s closest estimate if they are unsure of the actual amount they pay. Add up the
total taxes.

Type of Tax Annual Amount Paid

Sales Tax $0

Local Income Tax $0

State Income Tax $1,390

Local Property Tax $ 1,648

Excise Taxes $0

Other Taxes (federal) $ 4,354

Total $ 7,392

(Continued on next page)

Part 3: Analysis: (5 points each)
In your interview, ask the person about the amount they pay each year for the taxes.
3. Ask your interviewee if, in their opinion, they are paying too much, too little, or a
reasonable amount of taxes to state and local governments each year. Why do they
feel that way?
 She feel she’s a reasonable amount of taxes.

4. Ask about their opinion on progressive taxation – should the wealthier pay higher
tax rates than the poor. Do they think this is fair? Why or why not?

They believe that those with a greater income and earn more money, such as the wealthy,
should pay indeed a higher tax. They believe it is reasonable for them to pay more because
they earn more than the majority of the population.

Original content 2019 by Michigan Virtual, remixed by Idaho Digital Learning Alliance, and licensed under CC BY-NC-SA 4.0