A Give and Take | Taxes and Subsidies

TAXES AND

Welcoming Remarks

Welcome back to class, everyone! If this is your first class, we’re very excited to meet you! Before moving on to our lesson, let’s all introduce ourselves

Tell us your: Name

Age Favourite subject in school

Fantastic! Now that we all know each other, we are ready to embark on an exciting journey of learning.

Along the way, you will discover new ideas, practice thinking on your feet, build your confidence when speaking in front of an audience, and develop your critical thinking skills.

Expectations 1 2 Active participation

Thrilling activities awaits

The activities will keep you on the edge of your seat!

Give awesome speeches!

We'll have a chance to speak up and get helpful feedback!

I'll call on your wacky ideas to make this class extra special. 3

Reminder: Class Rules

Now that we all know each other, let’s make this class into a proper classroom!

Here are some rules that we will all follow together:

Before Class

Makesurethatyou’veeatenbreakfast/lunchandhavegonetothe bathroom

JointheZoomcallafewminutesbeforeclassstartssowecanget startedrightaway!

At the Start of Class

Turnyourcameraonsowecanseeyourlovelysmile!

Letyourcoachknowifyouneedtoleaveclassearly

During Class

Keep your camera on unless you are preparing during an activity

Put your hand up if you want to say something

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INTRODUCTION

Step into the world of taxes and subsidies where we'll explore how taxes function, why we pay them, and where the money goes.

We'll also learn about subsidies and how to advocate for them as a Prime Minister in the Asian Parliamentary format. Let's dive into the realm of money matters and develop our debating skills together!

CLASS ROADMAP

PART ONE

TAXES

What

How taxes work

SUBSIDIES

What is a subsidy?

Why subsidies are given by the government

Examples of subsidies

Problems with Subsidies

Alternatives to subsidies

GIMME THE MONEY

Arguing for subsidies

RT TWO

WELCOME, PRIME MINISTER!

Role of a Prime Minister Structure of a Prime Minister’s Speech Example Prime Minister Speech

I AM THE PRIME MINISTER

Giving a Prime Minister Speech RECAP

PART THREE

PART 1: TAXES

SUBSIDIES

What is a subsidy?

Why subsidies are given by the government

Examples of subsidies

Problems with Subsidies

Alternatives to subsidies

GIMME THE MONEY

Arguing for subsidies

RT TWO

WELCOME, PRIME MINISTER!

Role of a Prime Minister Structure of a Prime Minister’s Speech Example Prime Minister Speech

I AM THE PRIME MINISTER

Giving a Prime Minister Speech RECAP

PART THREE

By the end of today’s class, you’ll learn:

How taxes and subsidies work

The importance of taxes and subsidies

Issues surrounding these funding schemes

How to give a Prime Minister speech

Would You Rather?

Warm-upActivity

Time 5 Mins: Discussion

Rules

Think fast, type your choice in the chat!

Activity Guidelines

Decide between a and b:

Paying $3 for a 1-hour bus ride to school or paying $30 to ride a car for 10 minutes?

Getting $20 as your pocket money every day or getting all three meals free every day

Paying twice as much money for a McDonald’s meal than you do now or giving the doctor a month’s worth of your allowance every time you get sick

1.

2.

3.

A B

Every choice we make has a trade-off In today’s module, we’ll see how making some sacrifices can actually save money and improve our lives.

WHAT IS A TAX?

A tax is a small amount of money that people give to the government. This money helps the government do important things, like building schools, fixing roads, and keeping our neighbourhoods safe. When we buy things, some of the money we pay goes to the government as a tax.

When we earn money, part of that is collected by the government It's like a way for everyone to share a little bit so that we can all enjoy better things in our community.

Why do we pay taxes?

Paying taxes is one of the duties of a good citizen. Here are a few reasons why that’s the case:

Supporting Public Services and Communities

We pay taxes to fund important services like education, healthcare, and public safety, and to create and maintain shared spaces like parks and libraries.

Investing in the Future of the Country

Tax money is used to invest in projects that help the country grow, such as research and development. It also supports the functioning of the government itself, including maintaining law and order.

Reducing Inequalities and Maintaining Infrastructure

Taxes can be used to help lessen economic inequalities by providing assistance to those in need through welfare programs like homeless shelters and soup kitchens Additionally, tax money is used to build and repair essential infrastructure like roads and bridges that keep society running smoothly.

In the end, citizens are the ones that benefit from taxes.

Key Takeaway

TYPES OF TAXES

SALES TAX

When you buy things, you pay a little extra money called sales tax

PROPERTY TAX

If you have a house or land, you pay a fee called property tax

SIN TAX

This tax is placed on specific things that the government deems as harmful like alcohol, or tobacco products (e.g. cigarettes)

INCOME TAX

This is a part of the money people earn from their jobs.

CORPORATE TAX

Companies and big businesses also pay taxes on the money they make.

INHERITANCE TAX

To access money/ items/ property people receive from someone who passed away, people must pay for these valuable things left to them by their wealthy relatives

Did you know?

Different types of taxes are used for specific goods and services. They serve as the budget. Imagine–property taxes will be used to build homeless shelters, while income taxes will be used to provide welfare checks.

Welfare check - A payment made by the government or an organization to a person who needs help because they do not have enough money.

Definition

Taxing the rich more

Pros

Fairness: Those with larger portion of thei burden on those with reducing income ineq

Helps the lower clas pay more, but losing Meanwhile, those wit able to save or spend income that would h

Cons

Seen as unfair. Those more money will be a because they are bur

Discourages people f money because peop pointless– the extra in anyway.

Each way has its own pros and cons. Taxing th could also discourage some people from work on those who don't have much to spare. It's a

ng Two Tax Schemes

RESSIVE PROPORTIONAL

and the poor less Taxing everyone the same amount

higher earnings pay a ir income, lessening the h less money, and quality.

s: The rich may have to $100 doesn’t hurt them. th less money are now d on necessities the ave been taxed.

Easy to implement and collect

Fairness: People will view this as fair because no one is treated differently.

Encourages people to earn more money: If they get taxed $100 a month, regardless of whether they earn $1,000 or $10,000 a month, people will work harder.

e who work hard to earn angry at the government dened with more taxes

from earning more ple will feel like it is ncome will be taxed

Unfair: Because this does not adjust based on income, it places a heavier burden on lower-income individuals

Government has less money it can collect because they are letting the rich keep most of their wealth, while the poor might not be able to fulfill their duty to pay taxes.

he rich more might help the community have more money for important things, but it king hard Taxing everyone the same could feel fair, but it might also put more burden bit like trying to balance a scale to find the best way to help our community.

Where Do My Taxes Go?

When we pay taxes, the money goes to the government. The government uses this money to provide things that everyone needs and uses. These things are called "public goods and services."

Public goods and services are meant to be used by everyone This doesn’t mean they are always free Sometimes, the government still has to charge a small amount to help maintain and pay for salaries to keep these running

Public Goods

Roads and highways: Building and maintaining roads so we can travel safely.

Parks and playgrounds: Public spaces where everyone can play and relax.

Streetlights: Lights that help keep our streets safe at night.

Bridges: Structures that help us cross over rivers and other obstacles.

Water fountains: Access to clean drinking water for everyone.

1.

Public Services

Schools: Building schools and giving funding to public schools so that people don’t have access to quality education in their neighbourhoods.

2. 3 4 5. 6. 7.

Hospitals: Facilities, medicine, and salaries for doctors and nurses so that anyone can get medical care when they’re sick.

Police and firefighters: People who keep us safe and respond to emergencies

Libraries: Places where we can borrow books and learn new things

Trash collection: Services that help keep our neighbourhoods clean.

Public transportation: Building railroads and subways, or buying fleets of busses so that people can get around the city.

Subsidies: We’ll learn about this in the next section!

��Fun Fact: Brazil is the only country in the world that offers free healthcare for all its citizens.

Among the things listed, which is your favourite? Is there anything else you wish the government paid for with taxes?

PAY UP! Class Discussion

Time 5 Mins: Discussion

Rules

Discuss and rank as a class, from 1-4, who should be paying the most taxes

SCENARIO:

Mario earns an average income. He swims at the public pool every weekend.

Shanaia travels to a different place every weekend. She has her own private plane and boat.

Xing Xing came from a poor family. She put herself through school as a working student and is now a lawyer at the best law firm in London.

Jimmy lost his job and now lives in the homeless shelter while he tries to get back on his feet.

People come from different backgrounds and are going through their own problems. The government must carefully consider what the fairest and best tax policy is.

PART 2: THE SUBSIDY MYSTERY

PART ONE

WOULD YOU RATHER?

Warm Up Activity

TAXES

What is a Tax?

Why do we pay taxes?

Types of taxes

How taxes work

Where Do My Taxes Go? Public goods Public services Subsidies PAY UP!

Discussing how to tax

SUBSIDIES

What is a subsidy?

Why subsidies are given by the government

Examples of subsidies

Problems with Subsidies

Alternatives to subsidies

GIMME THE MONEY

Arguing for subsidies

RT TWO

WELCOME, PRIME MINISTER!

Role of a Prime Minister

Structure of a Prime Minister’s Speech

Example Prime Minister Speech I AM THE PRIME MINISTER

Giving a Prime Minister Speech

RECAP

PART THREE

What is a subsidy?

A subsidy is a helping hand from the government. It's money that they give to people or businesses to make things easier or cheaper. For example, if the government gives money to farmers to help them grow food, that's a subsidy. It's a way to support certain things that are important for the community or the country.

The money from subsidies is also funded through taxes or is a tax break given by the government.

Why subsidies are given by the government

Supporting Important Things

Subsidies are given to support things that are important for the community or the country.

Example: If farming is a big part of the economy, the government might give subsidies to farmers to help them produce more food.

Making Things Affordable

Subsidies can make things cheaper for people.

Example: If education is important, the government might provide scholarships for a number of students so that they can go to school.

Encouraging Certain Actions

Subsidies can encourage people to do things that are good for everyone.

Example: If the government wants to promote environmentally friendly businesses, they might give subsidies to companies that produce solar panels or make electric cars.

Boosting the Economy

Sometimes, subsidies are used to boost certain industries or create more jobs, which helps the economy grow

Example: Farmers might be given money so that they can buy seeds, fertilizers, and tools

So, subsidies are a way to support, encourage, and make important things more accessible for everyone.

The goal of subsidies is to support what are deemed to be key parts of the economy and country.

Examples of subsidies

AGRICULTURAL

The government might give money to farmers to help them buy equipment, seeds, or fertilizers This encourages more food production and helps keep food prices stable

EDUCATION

In some cases, the government might give scholarships to students or help others pay off a part of their student loan.

Student loan – money borrowed from the bank to pay for tuition fees Often, leaves people in debt for years.

HEALTHCARE

Governments might provide free health insurance for people.

RENEWABLE ENERGY

To encourage clean energy sources like solar or wind power, governments provide subsidies to companies that produce renewable energy.

HOUSING

This can help people afford housing by lowering the rent for low-income families

PUBLIC TRANSPORTATION

Governments may give money to public transportation systems like buses and trains to keep ticket prices lower or free for certain groups of people

These are just a few examples of how subsidies work to support various important aspects of our lives

Do you think that all subsidies are good? Can you think of any problems that may arise from them?

Problems with subsidies

Cost to Government 1

These can place a significant financial burden on the government, lessening funds that could be used for other essential services.

Imbalance 2

They might change how much of something is available (supply) and how much people want it (demand), which can make it harder for resources to be used in the best way.

When everyone gets free ice cream, you and your friends might start eating more ice cream than you used to. You might even get tired of it! On the other hand, because the government is paying for all the ice cream, they might not have enough money left to buy other important things like books for the library or medicine

Dependency 3

Subsidies can create dependency on government support, discouraging businesses and people from working to earn more money by themselves.

4

Favouritism

Subsidies may lead to unfair advantages for certain industries or businesses, creating an uneven playing field. This would make it harder for businesses that don’t have the subsidy to start up and compete, which also lessens the options that consumers have.

Imagine: The government gives $1,000,000 to the construction companies in the northern part of the country. With that money, they are able to buy better equipment. The companies from the South make beautiful buildings, however, they don’t have the budget to buy new equipment. Eventually, the South’s construction companies had to close down because they could not build as many buildings as companies from the North. Now, all the buildings in the country look the same

❓Did You Know? Subsidies make the fossil fuels that are making climate change worse more affordable. That, in turn, means people keep using fossil fuels instead of switching to renewable energy.

Since the government can’t just give out money to everyone, it has to find other ways to make sure that the people and businesses that need help get the support they need.

PART 2: THE SUBSIDY MYSTERY

Alternatives to Subsidies

Tax Credits: Instead of giving money directly, the government can offer tax credits, which lower the amount of taxes people or businesses have to pay. It’s like a coupon that the government gives you when you buy something or do something good. You can use it so that you pay a little less in taxes, and that leaves you with more money for other things you like.

Low-Interest Loans: Let people and businesses borrow money with lower interest rates. This means that people won’t have to pay a lot of extra money back when they return the money they borrowed.

Price Controls: The government can make sure that the prices of certain goods or services do not go over a specific amount so that more people can afford to pay for them. For example, keeping the price of fever medicine at $1.

Directly Giving Services: Instead of giving money, the government can directly provide certain services like healthcare or education to the public for free.

Charities: These non-government grou can also gather donations to help peop in need

Private Sector Grants: Rich people and large companies can provide scholarships, build hospitals, and fund research to shift to renewable energy.

Fun Fact: Bill Gates is said to have donated over $50 billion of his and his wife’s fortune to charity since 1994.

��

These alternatives can achieve similar goals to subsidies by providing support, reducing costs, and making important things more accessible.

While subsidies are great tools for making things accessible for citizens and encouraging good actions, the government does not need to use taxes to provide direct payments to people. Other methods exist, plus they can also rely on charities and businesses to help.

Alternatives to Subsidies

Example

Mia grew up in a community with limited opportunities. She attended after-school classes at a free youth centre, where she gained skills in technology and leadership. Today, she works as a successful software developer.

Speech Blocks Template

INTRODUCTION

Subsidies can empower people and build a better society. We need to subsidize youth programs because they can empower young people like Mia with skills and knowledge that open doors to better futures.

REASON 1

The first reason why I think we should subsidize youth centres is that these programs provide a safe and supportive environment where young people can learn and grow. By offering activities like Mia's after-school classes, we can keep kids engaged in positive and educational activities, helping them stay away from negative influences.

REASON 2

The second reason is that, while some companies give scholarships to top students, subsidies provide comprehensive support for any kid who is interested, ensuring that all youth have access to opportunities that help them thrive and help the community in the future.

CONCLUSION

By subsidizing youth programs, we are not only helping already smart students succeed, we giving all kids the chance to build a brighter future for our entire community.

Time

GIMME THE MONEY

5 Mins: Prep

1-2 Mins: Speak

Rules

Pick one of the causes below and think of arguments to convince the government’s accountant why your cause should receive the most subsidy.

Guidelines

Think about why your cause is important. Will society benefit from funding your cause?

Are there no better alternatives to fund your cause?

CAUSES

Casey loves animals and dreams of becoming a wildlife biologist. She hears that some forests where animals live are getting smaller because of cities expanding. She wants to help save these homes for animals.

Sergiy’s family loves eating fresh, healthy food. He learns that some farmers use things that can be bad for the environment and our health. Sergiy wants to help farmers who grow food in a way that's good for everyone.

Toniazit loves visiting the beach and playing in the water. But it’s very far from her home. The train going there is old and unsafe, but she can’t afford to pay the high fees of taking an Uber. She wants to help make the beach more accessible for everyone.

PART 2: THE SUBSIDY MYSTERY

INTRODUCTION

Subsidies can empower people and build a better society. That is why we should subsidize (pick one)

animals farmers public transportation \ \

Extra for experts: if you like, you can craft your own introduction! Remember that introductions should have an opening statement and a mission statement.

REASON 1

The first reason why I think we should subsidize (pick one) Explain your reasoning here …

animals farmers public transportation \ \

REASON 2

The second reason why I think we should subsidize (pick one) Explain your reasoning here …

animals farmers public transportation \ \

CONCLUSION

By subsidizing this cause, insert reasons here.

PART 3: WELCOME, PRIME MINISTER!

PART ONE

What

SUBSIDIES

What is a subsidy?

Why subsidies are given by the government

Examples of subsidies

Problems with Subsidies

Alternatives to subsidies

GIMME THE MONEY

Arguing for subsidies

RT TWO

WELCOME, PRIME MINISTER!

Role of a Prime Minister Structure of a Prime Minister’s Speech Example Prime Minister Speech

I AM THE PRIME MINISTER

Giving a Prime Minister Speech

PART THREE

In Asian Parliamentary debating, the role of the Prime Minister is like the leader of a team. The Prime Minister's job is to start the debate by talking about the topic and explaining their team's main ideas.

Here's how their speech is structured

The Prime Minister starts by introducing the topic and their team's stance on it They can use attention-grabbing phrases or questions to get everyone interested

The Prime Minister defines key terms in the topic to make sure everyone understands what they are talking about. This is important so that everyone is on the same page.

PART 3: WELCOME, PRIME MINISTER!

Remember, the Prime Minister's speech is like the opening statement for their team. They set the tone for the debate and lay out their team's main ideas.

e the topic is about doing a certain thing, like increasing taxes or giving ies, the Prime Minister must explain what actions their side will take.

Example 1: Increasing taxes

Action: We will increase income taxes for everyone. The money from this increase will be used to fund job training programs and new businesses.

ere, we explained what the increase will look like and how the government ll spend the extra money.

Example 2: Stopping subsidies

Action: We will stop giving subsidies to everyone. We will slowly decrease subsidies each month until we no longer provide funding by next year. Instead, this money will be used for building public infrastructure.

nce again, we explain what will be done with the excess money. But omething’s new– we also explain when this action will happen (slowly very month, until the end of the year).

RGUMENTS

rime Minister will present and explain their arguments.

ONCLUSION

end, the Prime Minister wraps up their speech by summarizing their main ents and why they believe their team's side is correct.

TRA FOR EXPERTS

rime Minister can respond to what they think the other team's arguments

e. They can explain why the other team's points won’t make sense after the ments are presented or why their own arguments are better.

Sample Prime Minister Speech

Topic: Should students have longer summer vacations?

PART 1

Introduction: Summer vacation is the only time students have time to truly relax after studying hard all year long. Students should have longer vacations.

Definition: First, let's make sure we all understand what we mean by "summer vacations." These are the holidays students get when school is not in session. Longer summer vacations mean more days off from school during the summer months.

��Fun Fact: Note that there is no “action” here because we are just discussing if students should have longer summer breaks. We are not making summer breaks longer as a school or government.

Argument 1: Our first reason is that longer summer vacations help students relax and recharge.

Explanation 1: Longer vacations give students a chance to rest their minds and bodies. Imagine playing outside, reading your favourite books, and spending quality time with your family and friends. Longer breaks mean more time for fun and less stress.

Sample Prime Minister Speech

Topic: Should students have longer summer vacations?

PART 2

Argument 2: Another reason is that longer summer vacations can improve learning. When students have a break, they can think about what they've learned and come back to school with fresh ideas. This makes learning even more exciting!

Explanation 2: They can explore new hobbies or places, which helps them become more creative and learn new things. Longer vacations give students more opportunities to think creatively.

Conclusion: In conclusion, longer summer vacations can bring many benefits. They help students relax, become more creative, and improve their learning. We believe that longer breaks are a great idea for students, and we're excited to hear what the other team has to say!

Extra for experts: Some may say that longer vacations mean students forget what they learned. But with the right balance, students can review their lessons before returning to school, so they don't forget anything important.

PART 3: WELCOME, PRIME MINISTER!

I AM THE PRIME MINISTER

10 Mins: Prep

2-3 Mins: Speak

Rules

Give a Prime Minister speech about the topic. The Prim Structure will be flashed while you are preparing and gi speech.

You can give just one argument, or two if you’re an expert!

Topic: We should only tax th

Guidelines

Think about:

Why does the government tax people

What can be done with taxes

PART 3: WELCOME, PRIME MINISTER!

Template

INTRODUCTION

Think of something catchy!

DEFINITION

Who are the rich?

What kind of taxes will only be for them?

ARGUMENT 1

You may just give 1 reason

ARGUMENT 2

You may just give 1 reason

Summarise your points CONCLUSION

EXTRA FOR EXPERTS

Think about what the other side might argue and why those arguments won’t work.

Feedback

It’s time for me to tell you my favourite thing about your speech, as well as what you can improve on.

Because it’s your first speech for this class the class, I will give you 2 pieces of feedback:

Whether you were able to properly follow the PM structure.

One new piece of feedback based on any of the following: Style: volume, pace, position on the screen, tone

Analytical reasoning: How to make your points even better!

1.

2.

a.

b.

A tax is a small amount of money that people give to the government. This money helps the government do important things, like building schools, fixing roads, and keeping our neighbourhoods safe.

Subsidies are helping hands from the government. It's money that they give to people or businesses to make things easier or cheaper.

There are a lot of different taxes that people pay. These include:

Subsidies can be for education, business, transportation, or anything the government deems important.

Subsidies can be problematic because they:

Are a cost to the government Can cause imbalance Can lead to dependency May involve favouritism

Thankfully, there are alternatives, such as:

Tax Credits

Low-Interest Loans

Price Controls

Vouchers

Direct Provision of Services Charities

Private Sector Grants