Taxes are how our society runs. This guide explains taxes simply using examples kids can relate to. Let’s dive into the world of taxes!
Imagine earning $10 from selling lemonade and giving $2 to your parents for helping. That’s like income tax—money earned and shared with the government.
You earn money today but pay your share to the neighborhood fund later. Deferred tax means paying taxes in the future based on rules.
Corporate tax is like a club fee for companies to do business in a country. The more they earn, the more they pay.
If you hire a friend for your lemonade stand, you give a bit to help schools and roads. That’s like payroll tax for companies paying employees.
Selling lemonade for $1 but asking for an extra 10 cents for parks? That extra money is sales tax—used for community needs.
Using the best spot for your stand and paying coins every year? That’s like property tax. Companies pay this for land or buildings.
Selling fizzy drinks with an extra charge? That’s excise tax. Buying lemons from another area and paying a fee? That’s customs duties.
Sharing lemonade supplies with your cousin and deciding fair charges? Companies do this between branches for taxes.
Taxes build communities! They fund schools, parks, and more. Understanding taxes helps us appreciate how they shape our world.