GEEM - Skills and Knowledge

F1.6 Describe the types of taxes that are collected by the different levels of government in Canada, and explain how tax revenue is used to provide services in the community.

Skill: Identifying Types of Taxes and Explaining How Taxes Are Used to Provide Services

The concept of taxes and taxation will be an integral part of the student's reality as a member of society. Beginning in the junior grades, students will describe the types of taxes that are collected by various levels of government in Canada and explain how this money is used to provide services.

The student will need to make connections to social studies learning and understand that there are different levels of government (for example municipal, provincial, territorial, federal, band council). Each of these levels imposes taxes and administers services.

Government Level	Taxes Collected	Examples of Services Offered
Band council	Band councils receive their budgets almost entirely from the federal government. Reserves and municipalities are exempt from property taxes.	Education system Cultural development Development of housing Application of laws
Municipal	Property tax	Fire service Highways (roads) Application of laws Hobbies Garbage collection
Provincial	Sales tax Income tax	Health care system Education system Public protection Correctional facilities School Board Management
Federal	Goods and Services tax Income tax	Correctional facilities Public safety Protection of the environment

Students should compare the services offered by each level of government, as well as the funding provided. They should be able to solve sales tax problems to determine the amount of money that goes to the federal government and the amount that goes to the provincial government.

Some questions that could be asked to help students learn more about taxes and various government services are:

Why do you think property taxes help pay for garbage collection?
What type of tax do you think would pay for road maintenance? Why?
Where do you think you could find information about what municipal taxes (or provincial or federal) pay for?

Knowledge: Property Tax

It is a tax that requires property owners to pay a sum of money based on criteria established by the municipality.

Knowledge: Harmonized Sales Tax

A tax that is added to the total cost of goods or services in order to fund levels of government. The sales tax in Ontario is 13%, with 8% going to the provincial government and 5% to the federal government. The amount of this tax varies from province to province. Some items, such as baby products and basic groceries, are tax exempt.

Knowledge: Income Tax

Every worker in Ontario is required to pay income tax, and the amount of tax paid is related to how much you earn.