Identify reasons for taxes, types of taxes, and the effects taxes have on business decisions.

Identification should include

• employer- and employee-paid taxes
• different means of taxing various products and activities
• levels of tax authorities (i.e., city, county, state, federal).

Effects should include how the types and amounts of taxes levied can influence business decisions (e.g., businesses often choose counties, states, and countries because of lower taxes).

Teacher Resource:

Volunteer Income Tax Assistance (VITA) Grant Program Links to an external site., Internal Revenue Service (IRS)